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"The Commission shall elect from its members a chairman, vice-chairman, clerk, and treasurer. Such treasurer shall furnish to said Commission, at its expense, a bond with corporate surety, to be approved by said Commission, in such amount as said Commission may determine, conditioned for the faithful performance of his duties.

"The Commission shall adopt suitable by-laws and shall make such rules and regulations as it may deem advisable governing the operation of flood control projects, not inconsistent with the laws of the signatory states or laws of the United States, and any rules or regulations lawfully promulgated thereunder.

“The Commission shall make an annual report to the governor of each of the signatory states, setting forth in detail the operations and transactions conducted by it pursuant to this compact and any legislation thereunder, which said reports shall be submitted to the respective legislatures.

"The Commission shall keep a record of all its meetings and proceedings, contracts, and accounts and shall maintain a suitable office, where its maps, plans, documents, records, and accounts shall be kept, subject to public inspection at such times and under such regulations as the Commission shall determine.

"ARTICLE III

"The Commission shall constitute a body, both corporate and politic, with full power and authority,

(1) To acquire by lease and to hold lands, easements, and rights of way for reservoirs herein contemplated, and for the use and enjoyment thereof;

“(2) To hold, maintain, and operate reservoirs, including appurtenances, for the purposes of flood control;

(3) To receive funds and moneys from the signatory states or other sources, for the purpose of acquiring, operating, and maintaining such reservoirs as may hereafter be constructed within the basin of the Connecticut River under the terms of this compact, including, without limiting the same, funds for the acquisition of lands, easements, and rights of way, for the payment of damages and for the maintenance and operation of said reservoirs, and the expenses incidental thereto and to the functions of the commission;

(4) To sue and be sued;
“(5) To have a seal and alter the same at pleasure;

“(6) To appoint and employ such agents and employees as may be required in the proper performance of the duties hereby committed to it, and to fix and determine their qualifications, duties, and compensation ;

(7) To enter into such contracts and agreements and to do and perform any and all other acts, matters and things as may be necessary and essential to the full and complete performance of the powers and duties hereby committed to and imposed upon it in connection with the construction, operation, and maintenance of the system of reservoirs hereby or hereafter authorized and as may be incidental thereto; and

“(8) To have such additional powers and duties as may hereafter be delegated to or imposed upon it from time to time by the action of the legislature of any of said states, concurred in by the legislatures of the other states.

“The Commission shall be charged with the duty, and it is hereby authorized and empowered, to give such assurances, satisfactory to the Secretary of War, as are required by Section 3 of the Act of Congress hereinbefore referred to.

"The Commission shall make, or cause to be made, such studies as it may deem necessary, in co-operation with the War Department, for the development of a comprehensive plan of flood control, as herein defined, and for the efficient management and regulation of said flood control system, and from time to time shall make reports and recommendations in respect thereto to the signatory states.

"The Commission shall not pledge the credit of the signatory states, or any of them, nor shall it convey, encumber, or in any way undertake to alienate the lands, easements, and rights of way so leased to it, as hereinafter provided, or any part thereof, or any interest therein, except by and with the consent of the signatory states.

ARTICLE IV

“There shall be established in the Connecticut River basin as an initial plan of flood control eight of the following eleven proposed reservoirs, to wit:

(a) Three of the four following reservoirs in the State of Vermont :

"(1) At Victory on the Moose River, controlling a drainage area of approximately sixty-six (66) square miles, and providing flood control storage for approximately seven (7) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control, and in addition thereto to be so designed and constructed as to provide for further development by increasing the storage capacity, the added storage to be used for water conservation or power development at the option of the State of Vermont.

(2) At Union Village on the Ompompanoosuc River, controlling a drainage area of approximately one hundred twenty-six (126) square miles, and providing flood control storage for approximately four and one-half (412) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control and also for a recreational lake, to be maintained during the summer months at a substantially constant minimum level, to be fixed by the Chief of Engineers of the United States Army, except when increased temporary storage is required for flood control.

“(3) At North Hartland on the Ottauquechee River, controlling a drainage area of approximately two hundred twenty-two (222) square miles, and providing flood control storage for approximately four and one-tenth (4.1) inches of runoff over said drainage area, the dam at said reservoir to be for flood control purposes only.

“(4) At Groton Pond on the Wells River, controlling a drainage area of approximately seventeen and three-tenths (17.3) square miles, and providing flood control storage for approximately seven (7) inches of runoff over said drainage area, and the dam at said reservoir to be constructed in such manner as to provide for flood control and also for a recreational lake, the level of the water to be maintained during the summer months at a substantially constant minimum level, to be fixed by the Chief of Engineers of the United States Army, except when increased temporary storage is required for flood control.

(b) Three reservoirs in the State of New Hampshire as follows:

(1) At Bethlehem Junction on the Ammonoosuc River, controlling a drainage area of approximately ninety (90) square miles, and providing flood control storage for approximately six (6) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control and also for a recreational lake to be maintained during the summer months at a substantially constant minimum level, to be fixed by the Chief of Engineers of the United States Army, except when increased temporary storage is required for flood control.

“(2) At Stocker Pond in the Towns of Grantham and Springfield, controlling a drainage area of approximately thirty-four and four-tenths (34.4) square miles, and providing flood control storage for approximately six (6) inches of runoff over said drainage area, the dam at said reservoir to be constructed for flood control, and in addition thereto to be so designed and constructed as to provide for further development by increasing the storage capacity, the added storage to be used for water conservation or power development, at the option of the State of New Hampshire.

“(3) At Surry Mountain on the Ashuelot River, controlling a drainage area of approximately one hundred .(100) square miles, and providing flood control storage for approximately six (6) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control, and in addition thereto to be so designed and constructed as to provide for further development by increasing the storage capacity, the added storage to be used for water conservation or power development, at the option of the State of New Hampshire.

"(c) Two of the four following reservoirs in the Commonwealth of Massachusetts:

“(1) At Knightville on the Westfield River, controlling a drainage area of approximately one hundred sixty-four (164) square miles, and providing flood control storage for approximately four and five-tenths (4.5) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control, and in addition thereto to be so designed and constructed as to provide for further development by increasing the storage capacity, the added storage to be used for water conservation or power development, at the option of the Commonwealth of Massachusetts; or to be constructed in such manner as to provide for flood control and also for a recreational lake to be maintained during the summer months at a substantially constant minimum level, to be fixed by the Chief of Engineers of the United States Army, except when increased temporary storage is required for flood control, as said Commonwealth of Massachusetts may elect.

(2) At Tully on the Tully Brook, a tributary of Millers River, controlling a drainage area of approximately fifty (50) square miles, and providing flood control storage for approximately eight (8) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control, and in addition thereto to be so designed and constructed as to provide for further development by increasing the storage capacity, the added storage to be used for water conservation or power development, at the option of the Commonwealth of Massachusetts; or to be constructed in such manner as to provide for flood control and also for a recreational lake to be maintained during the summer months at substantially constant minimum level, to be fixed by the Chief of Engineers of the United States Army, except when increased temporary storage is required for flood control, as said Commonwealth of Massachusetts may elect.

“(3) At Priest Pond on Priest Brook, a tributary of Millers River, controlling a drainage area of approximately eighteen and eight-tenths (18.8) square miles, and providing flood control storage for approximately six (6) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control, and in addition thereto to be so designed and constructed as to provide for further development by increasing the storage capacity, the added storage to be used for water conservation or power development, at the option of the Commonwealth of Massachusetts; or to be constructed in such manner as to provide for flood control, and also for a recreational lake to be maintained during the summer months, at a substantially constant minimum level, to be fixed by the Chief of Engineers of the United States Army, except when increased temporary storage is required for flood control, as said Commonwealth of Massachusetts may elect.

“(4) At Lower Naukeag on the Millers River, controlling a drainage area of approximately nineteen and seven-tenths (19.7) square miles, and providing flood control storage for approximately five and one-tenth (5.1) inches of runoff over said drainage area, the dam at said reservoir to be constructed in such manner as to provide for flood control and also for a recreational lake, to be maintained during the summer months at a substantially constant minimum level, to be fixed by the Chief of Engineers of the United States Army, except when increased temporary storage is required for flood control.

“The type and general plans for the construction of the eight reservoirs herein provided to be constructed as an initial plan of flood control on the Connecticut River basin, are to be approved by the Connecticut River Valley Flood Control Commission, hereinbefore created, before any construction work thereon is begun or prosecuted.

“In so far as any of the foregoing reservoirs may be constructed for the combined purpose of flood control and recreational facilities, none of the signatory states wherein such reservoirs are located shall be obligated to pay any additional cost of construction.

"ARTICLE V

"To the end that the Connecticut River Valley Flood Control Commission may give to the Secretary of War the assurances required under Section 3 of the Act of Congress hereinbefore referred to, and that the lands, easements, and rights of way necessary for the construction by the United States of the reservoirs and structures thereon, herein contemplated, may be provided, each state at the request of said Commission “shall proceed forthwith to acquire title to and possession of the lands, ea sements and rights of way within its territorial limits, which are determined and designated by the Commission for the construction of such reservoir or reservoirs.

"Such acquisition shall be by purchase or by the exercise of the right of eminent domain, as said Commission may direct, and in the manner now or hereafter provided for by the laws of the states wherein such lands, easements, and rights of way are located. Title to such lands, easements, and rights of way shall be taken in the name of the state wherein the same are located. The cost of acquisition, as hereinafter defined, shall be borne by said Commission and paid from and out of the funds contributed by the signatory states for such purpose, as hereinafter provided.

"Each state, upon notice from and at the sole expense of said Commission, shall forthwith proceed to make, or cause to be made, such highway relocations, including the acquisition of all necessary rights of way therefor, and the construction of such relocated highway, as may become necessary therein because of the construction, operation, and maintenance of any reservoir or

reservoirs for flood control purposes. Provided, however, that due allowance shall be made on account of any improved type of construction of such relocated highway. The character, location, route, and construction of such relocated highways shall be determined by the state wherein such relocated highway is situated, or by its representatives.

In like manner, such state, at the expense of the Commission, and upon its request, shall procure the relocation of any railroad, electric transmission, telephone or telegraph lines, or other public utility structures, including new rights of way therefor as may be essential on account of the construction, operation, and maintenance of such reservoir for flood control purposes.

"ARTICLE VI

"The Commission shall have the states in which such reservoirs are located free and harmless from all loss, cost, damage, or expense in connection with the control, operation, and maintenance of such reservoir or reservoirs except as hereinafter provided in Articles IX and XI.

“The Commission or the War Department in the construction and maintenance of such reservoir or reservoirs shall cause the area which may be flowed thereby when full, to be cleared of buildings and all such trees, brush, and underbrush as from time to time may be damaged or killed by such flowage; shall cause borrow pits or banks, other excavations, or unused accumulations of material and débris, to be leveled, graded, masked, removed, or otherwise disposed of in such a way as to leave no holes or other unsightly conditions therein; and shall cause all water pockets to be properly drained and the premises affected by such filowage to be landscaped in such manner as may reasonably preserve the natural condition of such premises before such construction, except as the same necessarily may be changed thereby.

“The lands, easements, and rights of way leased shall be exempt from all taxation but the said Commission shall make payments on or before the first day of October of each year to each town in which such lands, easements, and rights of way, respectively, are located, of a sum equal to the taxes which would have been assessed against the said lands, easements, and rights of way in such town the same had been included in the list of taxable property for such year, at the assessed valuation of the same as determined for the tax year 1936. Provided, however, that no payments shall be made or required hereunder on account of reimbursement for loss of taxes on any structure which may be erected on such premises in connection with the construction or use of said project, or on account of any railroad or other public utility which may be relocated under the terms of this compact, and which is included in the list of taxable property in said town when relocated.

“When said lands, easements, and rights of way essential to the construction of any dam or reservoir shall have been acquired as hereinbefore provided, the state wherein the same are located, shall make, execute, and deliver to said Commission a good and sufficient lease of the same, to include the structures thereon when completed and accepted by the state, except as hereinafter provided, upon the terms and conditions following, to wit:

“(a) The said Commission shall save the state in which said reservoirs are respectively located, free and harmless from all loss, cost, damage, or expense in connection with the control, operation, and maintenance of said reservoir or reservoirs except as hereinafter provided in Articles IX and XI.

“(b) In the construction and maintenance of such reservoir or reservoirs, the area which may be flowed thereby, when full, shall be cleared of buildings and of such trees, brush, and underbrush, as from time to time may be damaged or killed by such flowage; borrow pits or banks, other excavations or unused accumulations of material and débris, shall be leveled, graded, masked, removed, or otherwise disposed of in such a way as to leave no holes or other unsightly conditions therein ; all water pockets shall be properly drained ; and the premises affected by such flowage shall be landscaped in such manner as may reasonably preserve the natural condition of such premises before such construction, except as the same necessarily may be changed thereby.

"(c) The lands, easements, and rights of way hereby leased shall be exempt from all taxation; but the said Commission shall make payments on or before the first day of October of each year to each town in which such lands, easements, and rights of way, respectively, are located, of a sum equal to the taxes which would have been assessed against the said lands, easements, and rights of way in such town if the same had been included in the list of taxable property for such year, at the assessed valuation of the same as determined for the tax year 1936. Provided, however, that no payment shall be made or required hereunder on account of reimbursement for loss of taxes on any structure which may be erected on such premises in connection with the construction or use of said project; or on account of any railroad or other public utility which may be relocated under the terms of this agreement, and which thereafter is included in the list of taxable property in said town when relocated.

"(d) The lands, easements, and rights of way herein described are leased and demised solely for the purpose of flood control and for no other purpose, and the said lessor hereby excepts from this lease and reserves unto itself all benefit or advantage of water conservation, power, storage, or power develop ment, that may be inherent in such reservoir site, with the right, at such time as it may determine, and upon compliance with the requirements of the United States respecting the adjustment and payment of any added construction cost by reason of the type of construction adapted for that purpose, and the assumption and payment of the cost of acquiring any additional lands, easements, and rights of way necessitated by such additional development, and the full preservation of the principal purpose of flood control, to develop the same in such manner and for such purpose as may be essential to the full beneficial use thereof.

“(e) The term of said lease shall be for the period of nine hundred and ninety-nine years, subject only to be defeated by a breach of the terms or the conditions in this article set forth.

ARTICLE VII

“The cost of acquisition of lands, easements, and rights of way, as used or referred to herein, shall be deemed to include the cost of:

“(1) The purchase or condemnation of lands, easements, and rights of way of every kind and nature required or essential in the construction, develop ment, operation, nd maintenance of such reservoirs as an effective agency for flood control, and including, among other things, camp sites, borrow banks or pits, rock ledges, gravel deposits, and rights of way thereto in the vicinity of the dam necessary for the construction and maintenance thereof. Such camps are to be removed and the sites thoroughly cleaned up at no cost to the states or Commission before being relinquished by the United States upon the completion of the construction work;

“(2) The reconstruction, relocation, or elevation of public highways, including bridges or other structures;

“(3) The reconstruction or relocation of public service utilities, including railroads and the alteration of bridges and structures thereon, whether publicly or privately owned ;

“(4) The reconstruction or relocation of telegraph, telephone, or electric light or power distribution and transmission lines, pipe lines, aqueducts, water or gas mains; and

“(5) Any other damages, expenses, or costs that may be necessitated or incurred in procuring and providing the sites necessary for the construction of the reservoirs herein contemplated, including the cost and expense of acquiring such lands, easements, and rights of way and procuring the reconstruction or relocation of the highways, bridges, railroads, telephone, telegraph, and electric lines, pipes, aqueducts, and mains above mentioned, or the rights of way for the same, or any other similar expenditures.

“ARTICLE VIII

“The rights to be acquired and exercised by the Commission are solely for flood control purposes, and each of the respective signatory states wherein any reservoir may be situated, reserves respectively unto itself, all benefit or advantage of water conservation, power storage, or power development that may be inherent in such reservoir site.

"In the event any signatory state may wish to preserve to itself the value of such site for the purposes aforesaid, it may, through an appropriate agency of the state, so notify the United States, through its War Department, before any construction work is commenced hereunder for flood control purposes, so that the design and construction of the dam at such site may be developed in such manner as to provide for further development as a storage reservoir

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