---
kind: "section"
citation: "16 U.S.C. § 798"
title: "16"
title_heading: "Conservation"
number: "798"
heading: "Purpose and scope of preliminary permits; transfer and cancellation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/798"
units:
  - "Chapter 12 — Federal Regulation and Development of Power"
  - "Subchapter I — Regulation of the Development of Water Power and Resources"
---

# §798. Purpose and scope of preliminary permits; transfer and cancellation

- (a) **Purpose—** Each preliminary permit issued under this subchapter shall be for the sole purpose of maintaining priority of application for a license under the terms of this chapter for such period or periods, not exceeding a total of 4 years, as in the discretion of the [Commission](/usc/16/544.md?p=c) may be necessary for making examinations and surveys, for preparing [maps](/usc/16/430f–7.md?p=1), plans, specifications, and estimates, and for making financial arrangements.
- (b) **Extension of period—** The [Commission](/usc/16/544.md?p=c) may—
  - (1) extend the period of a preliminary permit once for not more than 4 additional years beyond the 4 years permitted by [subsection (a)](#a) if the [Commission](/usc/16/544.md?p=c) finds that the permittee has carried out activities under such permit in good faith and with reasonable diligence; and
  - (2) after the end of an extension period granted under [paragraph (1)](#b-1), issue an additional permit to the permittee if the [Commission](/usc/16/544.md?p=c) determines that there are extraordinary circumstances that warrant the issuance of the additional permit.
- (c) **Permit conditions—** Each such permit shall set forth the conditions under which priority shall be maintained.
- (d) **Non-transferability and cancellation of permits—** Such permits shall not be transferable, and may be canceled by order of the [Commission](/usc/16/544.md?p=c) upon failure of permittees to comply with the conditions thereof or for other good cause shown after notice and opportunity for hearing.

## Source credit

(June 10, 1920, ch. 285, pt. I, § 5, 41 Stat. 1067; renumbered pt. I and amended, Aug. 26, 1935, ch. 687, title II, §§ 203, 212, 49 Stat. 841, 847; Pub. L. 113–23, § 5, Aug. 9, 2013, 127 Stat. 495; Pub. L. 115–270, title III, § 3001(a), Oct. 23, 2018, 132 Stat. 3862.)

## Notes

### Editorial Notes

### Amendments

2018—Subsec. (a). Pub. L. 115–270, § 3001(a)(1), substituted “4 years” for “three years”.

Subsec. (b). Pub. L. 115–270, § 3001(a)(2), inserted dash after “The Commission may”, designated remaining provisions as par. (1), substituted “4 additional years beyond the 4 years” for “2 additional years beyond the 3 years”, and added par. (2).

2013—Pub. L. 113–23 designated existing first, second, and third sentences as subsecs. (a), (c), and (d), respectively, and added subsec. (b).

1935—Act Aug. 26, 1935, § 203, amended section generally, striking out “and a license issued” at end of second sentence and inserting “or for other good cause shown after notice and opportunity for hearing” in last sentence.