New York Laws
Title 17 - Water Power
15-1741 - Re-Entry at Expiration of the License Period.

1. Upon the expiration of the original license period any and all
interest of the licensee in and to state property which is covered by
the license, together with any and all works and structures thereon,
shall vest in and become the property of the state free and clear of any
and all liens and encumbrances, provided, however, that the department
may at the time the license is granted, or at any later time during its
continuance, enter into an agreement with the licensee that an allowance
will be made to the licensee for and on account of improvements to
property of the state, or improvements the value of which is dependent
on the use of state property, for which in view of the rent paid the
licensee shall not have been compensated by the privilege of the
license, but such agreement must be made before the improvement for
which such allowance is to be made, is undertaken. If the amount of such
allowance exceeds the amount of indebtedness, which may be lawfully
incurred for such purposes without an appropriation, the time when such
property is vested in the state shall be postponed until an adequate
appropriation is made therefor. The allowance so made or to be made may
be by way of an extension of the license pursuant to an agreement
between the department and the licensee.

2. Any agreement with the licensee for an allowance on account of
improvements to property of the state or improvements the value of which
is dependent on the use of state property, shall not provide for an
allowance in excess of the reconstruction cost, less a deduction equal
to that portion, if any, of the aggregate income from the project, over
and above actual and reasonable expenses of operation, including
repairs, which shall exceed an amount equal to eight per centum per
annum, to the time that the state property is taken over by the state,
of the actual and reasonable cost to the licensee of the lands and
interests in lands, the actual and reasonable cost to the licensee of
the ways, means and works and the allowances made for organization and
development expenses.