85-1-501. Survey of power generation capacity. (1) The department shall study the economic and environmental feasibility of constructing and operating a small-scale hydroelectric power generating facility on each of the water projects under its control and shall periodically update those studies as the cost of the electrical energy increases. In determining whether small-scale hydroelectric generation may […]
85-1-502. Notice of availability of lease sites. (1) If after completion of the feasibility study of a particular project the department determines that hydroelectric power generation at the project would be feasible and in the best interest of the people of the state of Montana, it shall publish notice and make the site available for lease […]
85-1-503. Receipt of applications. (1) Applications for lease may be submitted by any person qualified to do business in Montana. (2) The department shall consider only applications received within 180 days after the final publication of the notice. (3) Applications must include a statement of the capability of the applicant to achieve the annual production output estimated by […]
85-1-504. Determinations by department. (1) Within a reasonable time following the conclusion of the lease application period, the department shall hold a hearing to examine all applications that have been received for the lease of the project. (2) Within 180 days following the conclusion of the lease application period, the department shall reject any or all applications […]
85-1-505. Lease conditions. (1) The lessee shall pay a royalty to the state as required in the lease. (2) The department may authorize provisions in the lease that offer economic incentives for rapid development of the project or impose economic penalties for delays in development, which may include cancellation of the lease. History: En. Sec. 5, Ch. 503, […]
85-1-506. Compliance with federal law. The department may hold a license, permit, or exemption under federal law on a project. History: En. Sec. 6, Ch. 503, L. 1981; amd. Sec. 2, Ch. 293, L. 1985.
85-1-507. Duration of lease. The term of the lease may not exceed the term of the license, permit, or exemption held by the department under 85-1-506 and may in no event exceed 55 years. History: En. Sec. 7, Ch. 503, L. 1981.
85-1-508. Duties of the department. The department has primary responsibility for supervision of any lease. History: En. Sec. 8, Ch. 503, L. 1981; amd. Sec. 437, Ch. 418, L. 1995.
85-1-509. Power generation by department authorized. (1) If lease applications are not received under 85-1-503 or if the department rejects all lease applications under 85-1-504, the department may proceed to obtain any necessary license, permit, or exemption under federal law and commence construction and operation of a small-scale hydroelectric generation facility pursuant to the provisions of […]
85-1-510. Sale of power and allocation of revenue. (1) If the operator of a small-scale hydroelectric generation facility under this chapter and a public utility or an electric cooperative are unable to mutually agree to a contract for the sale of electricity or a price for the electricity purchased by the utility or electric cooperative, the […]
85-1-511. Determination by the public service commission. A determination of the rates and terms under which the power must be purchased shall be made by the public service commission upon petition of the facility operator or a public utility or electric cooperative or during a rate proceeding involving the review of rates paid for electricity purchased […]
85-1-512. Standards for the determination. (1) The standards for the determination provided for in 85-1-511 by the public service commission shall include the following: (a) Long-term contracts for the purchase of electricity by the utility or electric cooperative from a small-scale hydroelectric facility under this chapter shall be encouraged in order to enhance the economic feasibility of […]
85-1-513. Purchase of power by electric cooperative not agreeing to be bound by public service commission determination. If any electric cooperative wishing to purchase power from a small-scale hydroelectric facility under this chapter refuses to submit to the ratemaking authority of the public service commission established in 85-1-511, then the rate for such cooperative may be […]
85-1-514. Power generation negotiation process. (1) A person with federal authorization or, if authorization is not required, a person planning to construct a small-scale hydroelectric generation facility at a state-owned project shall submit an application to the department for hydroelectric development at the state-owned project site. (2) Upon receipt of a written application under subsection (1), the […]
