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Collie Coal (Griffin) Agreement Act 1979 (WA)

An Act to ratify an agreement between the State of Western Australia and The Griffin Coal Mining Company Limited with respect to the mining, development and rehabilitation of certain coal reserves and to matters related thereto.

Collie Coal (Griffin) Agreement Act 1979 (WA) Image
Western Australia Collie Coal (Griffin) Agreement Act 1979 Western Australia Collie Coal (Griffin) Agreement Act 1979 Contents 1. Short title 1 2. Terms used 1 3. Ratification of the Agreement 1 4. Ratification of 2023 variation agreement 1 5. Ratification of 2024 variation agreement 1 Schedule 1 — Collie Coal (Griffin) Agreement Schedule 2 — 2023 variation agreement Schedule 3 — 2024 variation agreement Notes Compilation table 1 Other notes 1 Defined terms Western Australia Collie Coal (Griffin) Agreement Act 1979 An Act to ratify an agreement between the State of Western Australia and The Griffin Coal Mining Company Limited with respect to the mining, development and rehabilitation of certain coal reserves and to matters related thereto. 1. Short title This Act may be cited as the Collie Coal (Griffin) Agreement Act 1979 1. 2. Terms used In this Act — 2023 variation agreement means the agreement a copy of which is set out in Schedule 2; 2024 variation agreement means the agreement a copy of which is set out in Schedule 3; Agreement means the agreement a copy of which is set out in Schedule 1 and includes that agreement — (a) as varied from time to time in accordance with its provisions; and (b) as varied by the 2023 variation agreement; and (c) as varied by the 2024 variation agreement. [Section 2 inserted: No. 14 of 2023 s. 4; amended: No. 30 of 2024 s. 4.] 3. Ratification of the Agreement The Agreement is hereby ratified and its implementation authorised. 4. Ratification of 2023 variation agreement (1) The 2023 variation agreement is ratified. (2) The implementation of the 2023 variation agreement is authorised. (3) Without limiting or otherwise affecting the Government Agreements Act 1979, the 2023 variation agreement operates and takes effect despite any enactment or other law. [Section 4 inserted: No. 14 of 2023 s. 5.] 5. Ratification of 2024 variation agreement (1) The 2024 variation agreement is ratified. (2) The implementation of the 2024 variation agreement is authorised. (3) Without limiting or otherwise affecting the Government Agreements Act 1979, the 2024 variation agreement operates and takes effect despite any enactment or other law. [Section 5 inserted: No. 30 of 2024 s. 5.] Schedule 1 — Collie Coal (Griffin) Agreement [s. 2] [Heading inserted: No. 14 of 2023 s. 6.] THIS AGREEMENT made this fifth day of November, 1979, BETWEEN THE HONOURABLE SIR CHARLES WALTER MICHAEL COURT, K.C.M.G., O.B.E., M.L.A. Premier of the State of Western Australia, acting for and on behalf of the said State and its instrumentalities from time to time (hereinafter called "the State") of the one part and THE GRIFFIN COAL MINING COMPANY LIMITED a company incorporated under the provisions of the Statutes of Western Australia and having its registered office at 24 King's Park Road, West Perth, in the said State (hereinafter called "the Company" in which term shall be included the Company and its successors and permitted assigns and appointees) of the other part. WHEREAS: (a) the Company is engaged in the mining of coal at Collie and desires to expand its activities and increase production and has applied for additional coal mining leases; (b) the State desires to ensure that the coal resource at Collie is developed in the most economic and practicable way and that the coal requirements of the State Energy Commission and Industry in Western Australia are adequately safeguarded consistent with the purposes of this Agreement; (c) by agreement dated 29th March, 1979 the State Energy Commission entered into an agreement with the Company to purchase coal for use in its power stations during a 25 year period from certain coal mining leases held by the Company. NOW THIS AGREEMENT WITNESSETH — Definitions 1 1. In this Agreement subject to the context — "advise", "apply", "approve", "approval", "consent", "certify", "direct", "notify", "request", or "require", means advise, apply, approve, approval, consent, certify, direct, notify, request, or require in writing as the case may be and any inflexion or derivation of any of these words has a corresponding meaning; "associated company" means — (a) any company or corporation providing for the purpose of this Agreement capital of not less than $2 000 000 or the equivalent thereof which is incorporated or formed within the United Kingdom the United States of America or Australia or such other country as the Minister may approve and which — (i) is promoted by the Company for all or any of the purposes of this Agreement and in which the Company or some other company or corporation acceptable to the Minister has not less than a 25% interest or some lesser interest acceptable to the Minister; or (ii) is related within the meaning of that term as used in section 6 of the Companies Act 1961, to any company or corporation in which the Company or some other company or corporation acceptable to the Minister holds not less than 25% of the issued ordinary share capital; and (iii) is notified to the Minister by the Company as being such a company; (b) any company or corporation approved in writing by the Minister; "Clause" means a clause of this Agreement; "commencement date" means the date the Bill referred to in Clause 3 comes into operation as an Act; "Commonwealth" means the Commonwealth of Australia and includes the Government for the time being thereof; "Company's Coal Mining Leases" means such of the coal mining leases referred to in Schedule "A" hereof together with such of the coal mining leases granted to the Company pursuant to Clause 21 as the Company holds from time to time during the currency of this Agreement; "Conservator of Forests" means the person for the time being holding or acting in the office of the Conservator of Forests under the provisions of the Forests Act; "Country Areas Water Supply Act" means the Country Areas Water Supply Act 1947; "Forests Act" means the Forests Act 1918; "Land Act" means the Land Act 1933; "local authority" means the council of a municipality that is a city, town or shire constituted under the Local Government Act 1960; "Mining Act" means (unless a contrary intention is expressed) the Mining Act 1904 and the amendments thereto and the regulations made thereunder as in force at the date of execution of this Agreement; "mining areas" means the areas over which the Company at the date hereof holds coal mining leases under the Mining Act referred to in Schedule "A" hereof together with the areas in respect of which the Company has at the date hereof applied for coal mining leases under the Mining Act referred to in Schedules "B" and "C" hereof; "mining plan" means any plan to be furnished to the Minister pursuant to Clause 14; "Minister" means the Minister in the Government of the State for the time being responsible (under whatsoever title) for the administration of the Act to ratify this Agreement and pending the passing of that Act means the Minister for the time being designated in a notice from the State to the Company and includes the successors in office to the Minister; "Minister for Mines" means the Minister in the Government of the State for the time being responsible for the administration of the Mining Act; "month" means calendar month; "notice" means notice in writing; "overall scheme" refers to the overall scheme in Clause 6; "person" or "persons" includes bodies corporate; "private road" means a road (not being a public road) which is either constructed by the Company in accordance with its proposals as approved by the Minister pursuant to Clause 7 or agreed by the parties to be a private road for the purpose of this Agreement; "public road" means a road as defined by the Road Traffic Act 1974; "Public Works Act" means the Public Works Act 1902; "Railways Commission" means the Western Australian Government Railways Commission established pursuant to the Government Railways Act 1904; "said State" means the State of Western Australia; "State Energy Commission" means the State Energy Commission of Western Australia established pursuant to the State Energy Commission Act 1945; "State Energy Commission contract" means the contract referred to in recital (c) to this Agreement; "State forest" means land dedicated under the Forests Act as a State forest; "this Agreement" "hereof" and "hereunder" refer to this Agreement whether in its original form or as from time to time added to varied or amended; "timber" includes trees when they have fallen or have been felled, and whether sawn, hewn, split or otherwise fashioned; "timber reserve" means land reserved pursuant to the Forests Act for forestry purposes; "year 1" means the 12 month period commencing on 1st July, 1980 and ending on 30th June, 1981 and "year" followed immediately by any other numeral has a corresponding meaning. Interpretation 1 2. In this Agreement — (a) monetary references are references to Australian currency unless otherwise specifically expressed; (b) power given under any clause other than Clause 35 to extend any period or date shall be without prejudice to the power of the Minister under Clause 35; (c) marginal notes do not affect the interpretation or construction 1; and (d) reference to an Act other than the Mining Act includes the amendments to that Act for the time being in force and also any Act passed in substitution therefor or in lieu thereof and the regulations for the time being in force thereunder. Initial obligations of the State 1 3. The State shall — (a) introduce and sponsor a Bill in the Parliament of Western Australia to ratify this Agreement and endeavour to secure its passage as an Act prior to 31st December, 1980; and (b) to the extent reasonably necessary for the purposes of this Agreement allow the Company to enter upon Crown lands. Ratification and operation 1 4. (1) The provisions of this Agreement other than this Clause and Clauses 1, 2 and 3 shall not come into operation until the Bill referred to in Clause 3 has been passed by the Parliament of Western Australia and comes into operation as an Act. (2) If before 31st December, 1980 the said Bill is not passed then unless the parties hereto otherwise agree this Agreement shall then cease and determine and neither of the parties hereto shall have any claim against the other of them with respect to any matter or thing arising out of, done, performed or omitted to be done or performed under this Agreement. (3) On the said Bill commencing to operate as an Act all the provisions of this Agreement shall operate and take effect notwithstanding the provisions of any Act or law. Reserves of coal for State Energy Commission 1 5. The parties agree that during the currency of this Agreement fifty per centum of the aggregate of the extractable reserves of coal from time to time existing in the coal mining leases held by the Company and set out in Schedule "A" hereof (other than coal mining leases numbered 449, 450, 453, 454, 532 and 537) together with all coal mining leases issued to the Company pursuant to Clause 21 in respect of applications for coal mining leases referred to in Schedule "B" hereof shall be reserved to satisfy the needs of the State Energy Commission and such proportion of the said reserves (or so much thereof as the State Energy Commission may from time to time require) shall be made available to the State Energy Commission pursuant to mutually acceptable commercial arrangements to be entered into between the Company and the State Energy Commission. Initial obligations of the Company‑overall scheme 1 6. The Company shall, having regard to the desire of the State to ensure that the coal resource at Collie is mined in the most economic and practicable way, forthwith prepare an overall scheme for the exploration and development of the Company's coal resource contained in the mining areas taking full account of the need to satisfy the coal requirements of both the State Energy Commission and Industry in the said State for the projected period of this Agreement and the need to take adequate steps to progressively rehabilitate all areas mined for coal within the Company's Coal Mining Leases whether mined by the Company or some other party before or after the date of this Agreement. The Company shall furnish the Minister with a copy of the overall scheme at the time of submitting proposals under subclause (1) of Clause 7. Company to submit proposals 1 7. (1) On or before the commencement of year 1 (or thereafter within such extended time as the Minister may allow as hereinafter provided) and subject to the provisions of this Agreement the Company shall having due regard to the State Energy Commission contract submit to the Minister to the fullest extent reasonably practicable its detailed proposals (which proposals shall include plans where appropriate and specifications where reasonably required by the Minister) for the exploration and development of the Company's coal resource referred to in the overall scheme for the 15 year period from the commencement of year 1 to the end of year 15 and including the location, area, lay‑out, design, quantities, materials and time programme for the commencement and completion of construction or the provision (as the case may be) of each of the following matters; namely — (a) measures to be taken for the mining of coal by open‑cut methods and deep mining methods consistent with the purposes of this Agreement; (b) details of the total tonneage of coal which the Company proposes to mine in each of years 1 to 15 inclusive; (c) the processing of coal where the Company proposes to proceed with production of processed coal on a commercial basis or to sell coal to another party who proposes to process the coal; (d) roads; (e) power supply; (f) the clearing of timber; (g) the collection and disposal of water (including water pumped or drawn from mines); (h) water courses and any alteration to their regime; (i) any other works, services or facilities desired by the Company, including any railway requirements; (j) use of local professional services, labour and materials; (k) any leases, licences or other tenures of land required from the State; and (l) measures to be taken in accordance with best modern practice for the protection and management of the environment including rehabilitation and/or restoration of the mined areas referred to in Clause 6 and the workings associated therewith, the prevention of the discharge of tailings, slimes, pollutants or overburden into the surrounding country, water courses, lakes or underground water supplies, the prevention of soil erosion and forest disease and, to the extent that the Company is responsible for implementing the matters referred to in paragraphs (a) to (k) of this subclause, consideration of the environmental effects relating thereto. Order of proposals 1 (2) The proposals may with the approval of the Minister and shall if so required by the State be submitted separately and in any order as to the matter or matters mentioned in one or more of paragraphs (a) to (l) of subclause (1) of this Clause. Use of existing infrastructure 1 (3) The proposals relating to any of the matters mentioned in subclause (1) of this Clause may with the approval of the Minister and that of any third parties concerned instead of providing for the construction of new facilities of the kind therein mentioned provide for the use by the Company upon reasonable terms and conditions of any existing facilities of such kind. Consideration of proposals 1 8. (1) On receipt of the said proposals the Minister shall — (a) approve of the said proposals either wholly or in part without qualification or reservation; or (b) defer consideration of or decision upon the same until such time as the Company submits a further proposal or proposals in respect of some other of the matters mentioned in subclause (1) of Clause 7 not covered by the said proposals; or (c) require as a condition precedent to the giving of his approval to the said proposals that the Company makes such alteration thereto or complies with such conditions in respect thereof as he thinks reasonable and in such a case the Minister shall disclose his reasons for such conditions. Advice of Minister's decision 1 (2) The Minister shall within 2 months after receipt of the said proposals give notice to the Company of his decision in respect to the same. Consultation with Minister 1 (3) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) of this Clause the Minister shall afford the Company full opportunity to consult with him and should it so desire to submit new proposals either generally or in respect to some particular matter. Minister's decision subject to arbitration 1 (4) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) of this Clause and the Company considers that the decision is unreasonable the Company may within 2 months after receipt of the notice mentioned in subclause (2) of this Clause elect to refer to arbitration in the manner hereinafter provided the question of the reasonableness of the decision. Arbitration award 1 (5) An award made on an arbitration pursuant to subclause (4) of this Clause shall have force and effect as follows — (a) if by the award the dispute is decided against the Company then unless the Company within 3 months after delivery of the award gives notice to the Minister of its acceptance of the award this Agreement shall on the expiration of that period of 3 months cease and determine; or (b) if by the award the dispute is decided in favour of the Company the decision shall take effect as a notice by the Minister that he is so satisfied with and approves the matter or matters the subject of the arbitration. Effect of non-approval of proposals 1 (6) Notwithstanding that under subclause (1) of this cause any detailed proposals of the Company are approved by the Minister or determined by arbitration award, unless each and every such proposal and matter is so approved or determined by the commencement of year 2 or by such extended date if any as the Company shall be granted pursuant to the provisions of this Agreement then the Minister may give to the Company 12 months notice of intention to determine this Agreement and unless before the expiration of the said 12 months period all the detailed proposals and matters are so approved or determined this Agreement shall cease and determine subject however to the provisions of Clause 37. Implementation of proposals 1 (7) The Company shall Implement the approved proposals in accordance with the terms thereof. Company's obligations for further proposals 1 9. (1) The Company shall submit to the Minister detailed proposals for the exploration and development of the coal resource contained in the Company's Coal Mining Leases and as to such of the matters mentioned in paragraphs (a) to (l) of subclause (1) of Clause 7 as the Minister may require — (a) for the 15 year period from the commencement of year 16 to the end of year 30, on or before the end of year 15, and (b) for the 12 year period from the commencement of year 31 to the end of year 42, on or before the end of year 30. (2) At the times the Company submits proposals pursuant to subclause (1) of this Clause the Company shall furnish to the satisfaction of the Minister evidence that the Company has used reasonable endeavours to negotiate an agreement with the State Energy Commission for the supply of coal consistent with the entitlements of the State Energy Commission in terms of Clause 5 for the period covered by the relevant proposal. (3) The provisions of Clause 7 and Clause 8 (other than subclauses (5) and (6)) shall mutatis mutandis apply to detailed proposals submitted pursuant to this Clause. The Company shall implement the approved proposals in accordance with the terms thereof. Additional proposals 1 10. If the Company at any time during the continuance of this Agreement desires to significantly vary its activities carried on pursuant to this Agreement to a greater extent than those specified in any approved proposals it shall give notice of such desire to the Minister and within 2 months thereafter shall submit to the Minister detailed proposals in respect of all matters covered by such notice and such of the other matters mentioned in paragraphs (a) to (l) of subclause (1) of Clause 7 as the Minister may require. The provisions of Clause 7 and Clause 8 (other than subclauses (5) and (6)) shall mutatis mutandis apply to detailed proposals submitted pursuant to this subclause. The Company shall implement the approved proposals in accordance with the terms thereof. Protection and management of the environment 1 11. (1) The Company shall in respect of the matters referred to in paragraph (l) of subclause (1) of Clause 7 and which are the subject of approved proposals under this Agreement, carry out a continuous programme of investigation and research including monitoring and the study of sample areas to ascertain the effectiveness of the measures it is taking pursuant to its approved proposals for rehabilitation and the protection and management of the environment. Reports 1 (2) The Company shall during the currency of this Agreement at yearly intervals commencing from the date when the Company's proposals are approved submit an interim report to the Minister concerning investigations and research carried out pursuant to subclause (1) of this Clause and at 3 yearly intervals commencing from such date submit a detailed report to the Minister on the result of the investigations and research during the previous 3 years. Additional proposals 1 (3) The Minister may within 2 months of the receipt of the detailed report pursuant to subclause (2) of this Clause notify the Company that he requires additional detailed proposals to be submitted in respect of all or any of the matters the subject of the detailed report. (4) The Company shall within 2 months of the receipt of a notice given pursuant to subclause (3) of this Clause submit to the Minister additional detailed proposals as required and the provisions of Clause 7 and Clause 8 (other than subclauses (5) and (6)) where applicable shall mutatis mutandis apply in respect of such proposals. (5) The Company shall implement the decision of the Minister or an award made on an arbitration as the case may be in accordance with the terms thereof. Access 1 12. The Company shall permit the Minister or any officer or other person authorised in that behalf by him to enter upon any land for the purpose of making any survey, inspection or examination for the purpose of this Agreement. Implementation of approved proposals relating to the environment 1 13. The Company may with the consent of the Conservator of Forests arrange for the Conservator of Forests to carry out on behalf of the Company any approved proposal relating to the environment at the cost in all respects of the Company. Mining plan to be furnished to Minister 1 14. During the currency of this Agreement the Company shall from the commencement of year 1 and thereafter at 5 yearly intervals furnish to the Minister in sufficient detail a plan of the Company's proposed mine development and coal production under this Agreement for the ensuing 5 years. Use of local professional services labour and materials 1 15. (1) The Company shall for the purposes of this Agreement as far as it is reasonable and economically practicable — (a) use the services of engineers, surveyors, architects and other professional consultants resident and available within the said State; (b) use labour available within the said State; (c) when calling for tenders and letting contracts for works materials plant equipment and supplies ensure that Western Australian suppliers manufacturers and contractors are given reasonable opportunity to tender or quote; and (d) give proper consideration and where possible preference to Western Australian suppliers manufacturers and contractors when letting contracts or placing orders for works materials plant equipment and supplies where price quality delivery and service are equal to or better than that obtainable elsewhere. (2) The Company shall from time to time during the currency of this Agreement when requested by the Minister submit a report concerning its implementation of the provisions of subclause (1) of this Clause. Roads 1 16. (1) The Company shall — (a) be responsible for the cost of the construction and maintenance of all private roads which shall be used in its operations hereunder; (b) at its own cost make such provision as shall ensure that all persons and vehicles (other than those engaged upon the Company's operations and its invitees and licensees) are excluded from use of any such private roads; and (c) at any place where such private roads are constructed by the Company so as to cross any railways or public roads provide and maintain at its cost such reasonable protection as may be required by the Commissioner of Main Roads or the Railways Commission as the case may be. Spillage of coal 1 (2) The Company shall use its best endeavours to minimize spillages of coal on private or public roads and shall remove spillage and clean up roads whenever such spillage occurs. Public Roads 1 (3) The State shall maintain or cause to be maintained those public roads under the control of the Commissioner of Main Roads or a local authority which may be used by the Company to a standard similar to comparable public roads maintained by the Commissioner of Main Roads or a local authority as the case may be. (4) In the event that the Company's operations hereunder require the use of a public road referred to in subclause (3) of this Clause which is inadequate for the purpose, or result in excessive damage or deterioration of any such public road (other than fair wear and tear) the company shall pay to the State the whole or an equitable part of the total cost of any upgrading required or of making good the damage or deterioration as may be reasonably required by the Commissioner of Main Roads having regard to the use of such public road by others. Liability 1 (5) The parties hereto further covenant and agree with each other that — (a) for the purposes of determining whether and the extent to which — (i) the Company is liable to any person or body corporate (other than the State); or (ii) an action is maintainable by any such person or body corporate in respect of the death or injury of any person or damage to any property arising out of the use of any of the roads referred to in subclause (1) of this Clause for the maintenance of which the Company is solely responsible hereunder and for no other purpose the Company shall be deemed to be a municipality and the said roads shall be deemed to be streets under the care control and management of the Company; and (b) for the purposes of this Clause the terms "municipality" "street" and "care control and management" shall have the meanings which they respectively have in the Local Government Act 1960. Rail 1 Loading facilities 1 17. (1) Pursuant to the need of the Company to transport coal by rail the Company shall in accordance with plans and specifications approved by the Railways Commission at its own cost provide or cause to be provided, maintain and operate coal loading facilities including weighing facilities sufficient to meet train operating requirements together with a staff adequate to ensure the proper operation of all such coal loading facilities. Loading and trimming of wagons and loading rates 1 (2) The Company shall ensure that — (a) all wagons are loaded within the authorised axle load capacity and shall be subject to such minimum load per wagon and per train as may be set by the Railways Commission; (b) the load in all wagons is properly trimmed to permit safe transport at all times; and (c) loading and unloading rates as prescribed by the Railways Commission from time to time are adhered to. Extensions and additions to track 1 (3) If the Company requires any additional railway track (including all necessary loops, spurs and sidings) to service any new coal loading station required by the Company within the Company's Coal Mining Leases then the Railways Commission shall, subject to first agreeing with the Company upon the route such railway track shall follow, the cost of construction thereof and the terms of payment, provide such railway track in accordance with plans and specifications determined by the Railways Commission at the cost of the Company. The provisions of Clause 42 shall not apply if the Company and the Railways Commission do not reach agreement as aforesaid. Any such additional railway track so provided shall be maintained by the Railways Commission at the expense of the Company to such standards as the Railways Commission shall specify. Mining 1 (4) The Company shall ensure that mining adjacent to the railway shall be carried out in such manner as not to endanger the railway. The Company shall obtain the prior approval of the Railways Commission before commencing any mining which might be likely to affect the stability of the railway. Railway crossing 1 (5) Notwithstanding the provisions of paragraph (c) of subclause (1) of Clause 16 the Company shall be permitted access over the Railway only at crossings approved by the Railways Commission. Diversion of railway 1 (6) The Company may during the currency of this Agreement request the Railways Commission to divert any portion of the Railway within the Company's Coal Mining Leases if in the opinion of the Minister such portion interferes with the logical and economical development of the Company's Coal Mining Leases. On receipt of such request the Railways Commission shall with reasonable expedition determine an alternative route for the Railway satisfactory to the Railways Commission and for this purpose may require the Company to provide land at the Company's expense. The Railways Commission shall subject to the availability of land divert the Railway at the Company's expense within 18 months of the determination of the alternative route as aforesaid. Additional rail requirements 1 (7) Where the Company requires the use of rail facilities for the transport of coal from the Company's Coal Mining Leases to a port for export overseas pursuant to any agreement entered into by the Company with the approval of the Minister pursuant to Clause 25, the Company shall give reasonable notice to the Railways Commission of its requirements for additional rolling stock, track, improvements siding or other facilities and subject to the Railways Commission approving such requirements and the Company entering into satisfactory arrangements for their provision and their financing by the Company, the Railways Commission will provide such requirements. Electricity 1 Non-interference with Muja power station water supply and transmission lines 1 18. (1) The Company shall not carry out any operations pursuant to this Agreement so as to interfere with or endanger the Muja power station or the bores pumps pipelines and appurtenant works supplying water thereto or any transmission lines therefrom. Diversion of transmission lines 1 (2) The Company may from time to time request the State Energy Commission to divert any portion of its transmission lines, and on receipt of such request the State Energy Commission shall with reasonable expedition determine an alternative route for the transmission lines satisfactory to the State Energy Commission and for this purpose may require the Company to provide land at the Company's expense. The State Energy Commission shall subject to the availability of land divert at the expense of the Company the transmission lines within 12 months of the determination of the alternative route as aforesaid. Water 1 19. (1) Subject to any right of the Company to utilize or otherwise dispose of water occurring in or collecting on the Company's Coal Mining Leases (including water pumped or drawn from mines) in accordance with any proposal approved hereunder, the Company shall permit the State or any instrumentality of the State to use so much of such water remaining as is required by the State or such instrumentality of the State PROVIDED HOWEVER that nothing in this Clause shall be deemed to affect any agreement or arrangement between the Company and the State Energy Commission as to such water, or shall diminish any obligation upon the Company to comply with the provisions of any Act or law of the State. (2) Where any proposed mining activity of the Company is likely to affect the availability to the State of water from any bore within the Company's Coal Mining Leas