Industrial Lands (Kwinana) Agreement Act 1964 (WA)

Western Australia Industrial Lands (Kwinana) Agreement Act 1964 Western Australia Industrial Lands (Kwinana) Agreement Act 1964 Contents 1. Short title 1 2. Agreement approved and to take effect 1 Schedule — Industrial Lands (Kwinana) Agreement Notes Compilation table 27 Western Australia Industrial Lands (Kwinana) Agreement Act 1964 An Act to approve, and give effect to, an agreement relating to the disposition of certain lands at Kwinana for industrial purposes. 1. Short title This Act may be cited as the Industrial Lands (Kwinana) Agreement Act 1964 1. 2. Agreement approved and to take effect The agreement of which a copy is set out in the Schedule is approved and shall, notwithstanding any other Act or law, take effect. Schedule — Industrial Lands (Kwinana) Agreement [s. 2] [Heading amended: No. 19 of 2010 s. 4.] AN AGREEMENT under seal made the twenty‑fourth day of November 1964 BETWEEN the HONOURABLE DAVID BRAND, M.L.A. Premier and Treasurer of the State of Western Australia acting for and on behalf of the said State and its instrumentalities (hereinafter referred to as "the State") of the first part BP REFINERY (KWINANA) PROPRIETARY LIMITED a company which is deemed by the BP Refinery (Kwinana) Limited Act 1962 to be incorporated under the Companies Act 1961, which is the assignee of "the Company" referred to in the agreement ratified by the Oil Refinery Industry (Anglo‑Iranian Oil Company Limited) Act 1952 (Act No. 1 of 1952) and which has its registered office in the said State at Kwinana (hereinafter referred to as "BP" which term shall include its successors and assigns) of the second part and CSBP & FARMERS LTD. a company incorporated under the Companies Act 1961 and having its registered office at 133 St. George's Terrace Perth in the said State (hereinafter referred to as "CSBP" which term shall include its successors and assigns) of the third part. WHEREAS the parties hereto — (a) desire to enter into this Agreement with a view to the establishment and carrying on at Kwinana of — (i) a plant for the manufacture of ammonia and other products (being such a mixture of substances as to be "petroleum" within the meaning of the agreement ratified by the said Act No. 1 of 1952) on part of the refinery site as defined in that agreement; (ii) a plant on Area D (as hereinafter defined) for the manufacture by CSBP (using the said or other ammonia) of products including nitrogenous fertilisers. (b) desire to deal with certain lands for the said and other purposes. NOW THIS AGREEMENT WITNESSETH and the parties hereto hereby covenant and agree with one another as follows: Interpretation 2 1. In this Agreement subject to the context — "Area A" means all that piece of land (comprising 100 acres or thereabouts) delineated and coloured partly in red and the remainder in hachure on the Plan marked "A" initialled by or on behalf of the parties hereto for the purposes of identification and being (subject to survey) the land more particularly described in Schedule "A" hereto but if the boundaries of the land are altered pursuant to clause 3 hereof means that land as so altered; "Area B" means all that piece of land (comprising 115 acres or thereabouts) delineated and coloured blue on the said Plan marked "A" and being (subject to survey) the land more particularly described in Schedule "B" hereto but if the boundaries of the land are altered pursuant to clause 4 hereof means that land as so altered; "Area C" means all that piece of land (comprising 75 acres or thereabouts) referred to in clause 4(a) of the said recited agreement ratified by Act No. 1 of 1952 and being the land more particularly described in Schedule "C" hereto; "Area D" means all that piece of land (comprising 128 acres or thereabouts) delineated and coloured partly in brown and the remainder in hachure as aforesaid on the said Plan marked "A" and being (subject to survey) the land more particularly described in Schedule "D" hereto but if the boundaries of the land are altered pursuant to clause 6 hereof means that land as so altered; "Area E" means all that piece of land enclosed by the prolongation easterly of the southern boundary of Area B the prolongation southerly of the eastern boundary of Area B and the south‑east boundary of Area B and being the land delineated and coloured green on the said Plan marked "A". "associated company" means (a) any company notified in writing by CSBP to the Minister which is incorporated in the Commonwealth of Australia and which is — (i) a subsidiary of CSBP within the meaning of the term "subsidiary" in section 6 of the Companies Act 1961; or (ii) a company in which CSBP holds not less than thirty per cent (30%) of the issued ordinary share capital; and (b) any company approved in writing by the Minister for the purposes of this Agreement which is associated directly or indirectly with CSBP in its business or operations hereunder; "bulk cargo" means the bulk materials used or manufactured by CSBP and consigned for shipment or consigned for use by CSBP in connection with its operations; "diversion road" means Pioneer Road from the intersection of Ocean Street to the intersection of Gulf Street with projection north‑easterly until Mandurah Road is intersected; "KNC" means the company incorporated under the name of Kwinana Nitrogen Company Proprietary Limited; "Minister" means the Minister of the Crown to whose administration the ratifying Act is for the time being committed and otherwise the Minister for Industrial Development; "Commissioners" means the Fremantle Harbour Trust Commissioners constituted under the Fremantle Harbour Trust Act 1902; "ratifying Act" means the Act referred to in clause 2(1) hereof; "refinery site" has the same meaning as in the said recited agreement ratified by Act No. 1 of 1952; "the said State" means the State of Western Australia; "ton" means a ton of 2,240 pounds weight; "TP Board" means the Town Planning Board constituted under the Town Planning and Development Act 1928; "wharf" includes jetty structure. Any reference in this Agreement to an Act means that Act as amended from time to time and includes any Act passed in substitution for that Act and any regulations and by‑laws made and for the time being in force under any such Act. Marginal notes shall not affect the interpretation or construction hereof 2. Operation 2 2. (1) This Agreement shall be of no force or effect unless ratified by an Act of the Parliament of Western Australia which Act comes into operation before the 28th day of February, 1965 but if the Act so comes into operation the following provisions shall thereupon apply operate and take effect — (a) the State may by agreement acquire or compulsorily take or resume as for a public work within the meaning of the Public Works Act 1902 any land or any estate or interest in land which in the opinion of the State is reasonably required for the purposes of this Agreement and may thereafter dispose of or deal with the same in accordance with or for the purposes of this Agreement apart from the provisions of that Act; (b) rights and obligations herein created conferred or imposed shall have statutory effect as if enacted by the ratifying Act; and (c) no Act regulation or by‑law shall operate so as to prevent the State from fulfilling its obligations hereunder in accordance with and subject to the provisions hereof. (2) If the ratifying Act does not so come into operation, none of the parties hereto shall have any claim against either or both of the others of them by reason of anything herein contained. Area A 2 3. (1) As soon as conveniently may be after the coming into operation of the ratifying Act BP will submit to the TP Board a plan of subdivision of the refinery site in a form already approved (subject to survey) by the parties hereto and initialled by them or on their behalf for the purposes of identification or in any altered form upon which the parties hereto may mutually agree. (2) The said plan of subdivision shall delineate separately the portions of Area A coloured red and hachured respectively as referred to in the definition of Area A in clause 1 hereof. (3) The TP Board having prior to the execution hereof considered and tentatively approved the plan of subdivision referred to in subclause (1) of this clause will on the formal submission hereafter of the said plan or in any altered form as in this clause provided approve thereof without alteration thereto and without the affixing of any conditions or approval except such alterations and/or conditions if any as the parties hereto shall all agree to accept. The approval of the TP Board under this subclause shall be deemed to be an approval within the meaning and for the purposes of the Town Planning and Development Act 1928. (4) In exchange for and in consideration of the transfer of an estate in fee simple free of trusts and encumbrances in Area B as mentioned in clause 4 hereof BP shall transfer to the State which shall take an estate in fee simple free of encumbrances in Area A subject to any alterations which the parties hereto shall have all agreed to accept as aforesaid. (5) Possession of Area A shall be given to the State concurrently with the giving to BP of possession of Area B as hereinafter mentioned or on such other date if any as the State and BP may mutually agree upon. (6) So much of Area A as is delineated and coloured red on the said plan but excluding the land between high and low water marks on the seashore (subject to any alteration agreed upon by all parties hereto as aforesaid) shall be deemed held and may be dealt with under the provisions of the Industrial Development (Resumption of Land) Act 1945 as if acquired under section 11(1b) of that Act. Area B 2 4. (1) As soon as conveniently may be after the coming into operation of the ratifying Act the State shall — (a) acquire or compulsorily take or resume an estate in fee simple free of encumbrances in so much of Area B as then remains unalienated from the Crown; (b) submit to the TP Board a plan of subdivision showing Area B in a form already approved (subject to survey) by the parties hereto and initialled by them or on their behalf for the purposes of identification or in any altered form upon which the parties hereto may mutually agree; (c) cause the construction of the diversion road to be completed by the 31st day of August, 1965 and by that day to be opened to traffic; (d) in exchange for and in consideration of the transfer of an estate in fee simple free of encumbrances in Area A by instrument under the hand of the State transfer to BP which shall take an estate in fee simple free of trusts and encumbrances in Area B including the closed portions of roads mentioned in subclause (3) of this clause whereupon the provisions of the Industrial Development (Resumption of Land) Act 1945 and of the Industrial Development (Kwinana Area) Act 1952 shall be deemed to have been duly complied with and to be no longer applicable to Area B. (2) The TP Board having prior to the execution hereof considered and tentatively approved the plan of subdivision referred to in subclause (1) of this clause will on the formal submission hereafter of the said plan or in any altered form as in this clause provided approve thereof without alteration thereto and without the affixing of any conditions of approval except such alterations and/or conditions if any as the parties hereto shall all agree to accept. The approval of the TP Board under this subclause shall be deemed to be an approval within the meaning and for the purposes of the Town Planning and Development Act 1928. (3) By force of this Agreement and of the ratifying Act and with effect from the date possession is given of Area B as hereinafter mentioned — (a) all those portions of roads as at date hereof lie within Area B (being portions of Rockingham Road, Gulf Street and Richardson Street) shall be closed; (b) all rights of way over those portions of the roads so closed shall cease; (c) those portions of the roads so closed shall for all purposes be deemed to be added to and to form part of Area B and shall vest in Her Majesty as for an estate in fee simple in possession under the operation of the Transfer of Land Act 1893; (d) Area B with those additions shall be deemed for all purposes (including those of the said recited agreement ratified by Act No. 1 of 1952) to form part of the refinery site in lieu of Area A; and (e) Area A shall cease for all such purposes to form part of the refinery site; and the said recited Act No. 1 of 1952 and the agreement ratified by that Act will be deemed amended or altered and read and construed accordingly. (4) The Registrar of Titles shall on the application of the registered proprietor for the time being of the refinery site and on payment of the prescribed fee cancel the relative certificate or certificates of title to the refinery site as it exists at the date hereof and issue a new certificate or new certificates of title in which Area B with the addition of those portions of the roads so closed will be included within the refinery site and Area A will be excluded therefrom. (5) Possession of Area B (subject to any leases or tenancies of which notice in writing has been given to BP prior to possession) shall be given on the 1st day of September, 1965, or on such earlier date if the diversion road is completed before the 31st day of August, 1965 as the State and BP agree. Area C 2 5. BP shall sell to the State which shall purchase an estate in fee simple free of encumbrances in Area C for the sum of Seven Hundred and fifty pounds (£750) payable in full on acceptance for registration of a transfer of the land. Vacant possession of the land will thereupon be given to the State and Area C shall be deemed held and may be dealt with under the provisions of the Industrial Development (Resumption of Land) Act 1945 as if acquired under section 11(1b) of that Act. Area D 2 6. (1) As soon as conveniently may be before or after the approval by the TP Board of the plan of subdivision mentioned in clause 4 hereof the State shall — (a) acquire or compulsorily take or resume an estate in fee simple free of encumbrances in so much of Area D as then remains alienated from the Crown; (b) submit to the TP Board a plan of subdivision showing Area D in a form already approved (subject to survey) by the parties hereto and initialled by them or on their behalf for the purposes of identification or in any altered form upon which the parties hereto may mutually agree; (c) sell to CSBP which shall purchase an estate in fee simple free of trusts and encumbrances in Area D (subject to any alterations which the parties hereto shall have all agreed to accept as referred to in clause 3 hereof but including the closed portions of roads mentioned in subclause (4) of this clause) for the price calculated at the rate of £750 per acre, payable in three equal instalments the first of which instalments shall be paid on the 31st day of December, 1965, the second of which instalments shall be paid on the 31st day of December, 1968 and the third of which instalments shall be paid on the 31st day of December, 1970 provided that CSBP shall be at liberty to pay to the State the whole or balance of the purchase price of Area D at any time and the State shall by instrument under its hand transfer the land comprised in Area D to CSBP when the purchase price therefor is paid in full. (2) Upon the sale as aforesaid the provisions of the Industrial Development (Resumption of Land) Act 1945 and of the Industrial Development (Kwinana Area) Act 1952 shall be deemed to have been duly complied with and to be no longer applicable to Area D. (3) The TP Board having prior to the execution hereof considered and tentatively approved the plan of subdivision referred to in subclause (1) of this clause will on the formal submission hereafter of the said plan or in any altered form as in this clause provided approve thereof without alteration thereto and without the affixing of any conditions of approval except such alterations and/or conditions if any as the parties hereto shall all agree to accept. The approval of the TP Board under this subclause shall be deemed to be an approval within the meaning and for the purposes of the Town Planning and Development Act 1928. (4) By force of this Agreement and the ratifying Act and with effect from the date possession is given pursuant to subclause (7) of this clause — (a) all those portions of roads (including any Metropolitan Regional Road) as at date hereof lie within Area D shall be closed; (b) all rights of way over those portions of the roads so closed shall cease; and (c) those portions of the roads so closed shall for all purposes be deemed to be added to and to form part of Area D and shall vest in Her Majesty as for an estate in fee simple in possession under the operation of the Transfer of Land Act 1893. (5) The Registrar of Titles shall on the application of CSBP or other the person or company for the time being registered or entitled to be registered as the proprietor of Area D and on payment of the prescribed fee cancel the relative certificate or certificates of title to the whole or part of Area D and issue a new certificate or new certificates of title for Area D which will include those portions of the roads so closed (but subject to alteration if any as agreed by all the parties hereto as aforesaid). (6) On the day possession is given of Area D as hereinafter mentioned CSBP will pay to the State as a contribution towards the cost of constructing the diversion road adjacent to the eastern boundary of Area D a sum calculated on the length of the closed portion of Rockingham Road within Area D and computed at the rate of £11,000 per mile. (7) Possession of Area D (or if altered as aforesaid then as altered) shall be given to CSBP concurrently with the giving to BP of possession of Area B as hereinbefore mentioned or on such other date if any as the parties hereto may mutually agree upon. (8) Upon the completion of the construction of the wharf the westward end of the southern boundary of Area D shall be adjusted and formed in manner following, namely, by a line commencing from the centre point of the shore end of the wharf if the wharf is in the form of a jetty or otherwise from such point of the wharf as the State and CSBP agree upon being extended inland for a distance of ten (10) chains beyond high water mark and parallel with the general direction of the then existing southern boundary of Area D and being joined to the then existing southern boundary of Area D by the shortest route. (9) The land (within Area D) south and west of the line referred to in the preceding subclause shall be the subject of a plan of subdivision and be submitted to the TP Board and it shall be the duty of the TP Board to approve such plan without alteration thereto and without the affixing of any conditions of approval except such alterations and/or conditions if any as the State shall agree to accept and the approval of the TP Board under this subclause shall be deemed to be an approval by the TP Board within the meaning and for the purposes of the Town Planning and Development Act 1928. (10) Forthwith after the submission of the plan of subdivision mentioned in the preceding subclause the land the subject thereof shall by force of this Agreement be excised from Area D and thereupon vest in Her Majesty as for an estate in fee simple in possession and shall be deemed held and may be dealt with under the provisions of the Industrial Development (Resumption of Land) Act 1945 as if acquired under section 11(1b) of that Act. In respect of land so vested the State shall pay to CSBP compensation therefor computed at the same price per acre as CSBP paid to the State per acre for Area D. (11) If at any time hereafter Her Majesty becomes possessed of such an estate as to be able to transfer to CSBP an estate in fee simple in both or either of the areas adjoining the southern boundary of Area D and shown coloured yellow and purple on the plan marked A and the TP Board approves or will approve of the plan of subdivision in respect of both or either of those areas then the Minister shall as soon as conveniently may be thereafter grant to CSBP an option to purchase both or either (as the case may be) of those areas at a price to be computed at the average price per acre paid by or on behalf of Her Majesty to acquire the alienated portions of the area or areas the subject of the option at the time or respective times of the exercise of the option. If CSBP desire to exercise the option it shall give notice to the Minister within the twenty‑eight (28) days next following the receipt by it of the option, and the purchase price shall be paid by CSBP within the fourteen days next following a notice to CSBP advising it of the amount of the purchase price. Area E 2 7. (1) As soon as conveniently may be after the coming into operation of the ratifying Act the State shall acquire or compulsorily take or resume an estate in fee simple free of encumbrances in all or so much of the land comprised in Rockingham Lots 382, 383, 384 and 385 as then remains alienated from the Crown. (2) In the event of — (a) there being a re‑alignment of so much of Pioneer Road and the railway (which is hereafter to be constructed along the north‑western side of the road) as is within Area E, and (b) the whole or portion of the land within Area E which adjoins the south‑eastern boundary of Area B is in the absolute opinion of the State no longer required for road or railway purposes then the Minister shall as soon as conveniently may be thereafter grant to BP an option to purchase the whole or that portion of that said land at the current market price of land in the neighbouring area thereof upon and subject to the provisions contained in subclause (3) of this clause. (3) If BP desires to exercise the option BP shall give notice to the Minister within the three (3) calendar months next following the receipt by it of the option and pay the purchase price therefor within the twenty‑eight (28) days next following the notice from the Minister advising it of the amount of the purchase price. (4) If at any time prior to the re‑alignment of Pioneer Road or the railway as mentioned in subclause (2) of this clause the State requires any portion of Area E for the purposes of industrial development the State shall be released and discharged from its obligations to BP under that subclause on giving to BP a notice stating that such land is so required and such notice shall be conclusive evidence that the land is required for the purposes of industrial development. Further assurance 2 8. The parties hereto shall execute deliver and do all such documents acts and things as may be necessary or expedient to implement or give effect to the provisions hereof. Exemptions from Stamp Duties 2 9. This Agreement and the documents necessary to give effect to the foregoing provisions hereof shall be exempt from stamp duties payable under the laws of the said State. Terms of Agreement 2 10. This clause and the remaining provisions of this Agreement subject to clause 28 hereof will continue in force until and expire on the 1st day of January, 2014 unless CSBP by notice in writing to the State not later than the 1st day of January 2010 requires extension for such further period not exceeding twenty years as CSBP may nominate in such notice and this clause and the remaining provisions of this Agreement save for the right of renewal shall thereupon be extended accordingly. Construction of plant 2 11. (1) CSBP will before the 30th day of June 1966 commence to erect and thereafter will diligently proceed with the construction and establishment on Area D of a plant estimated to cost (inclusive of all necessary ancillary buildings work plant equipment wharf and services) Five million pounds (£5,000,000) and designed to produce and capable of producing not less than a total of one hundred thousand (100,000) tons of nitrogenous fertilisers and related products per annum and shall by the 31st day of December 1968 complete the construction and establishment aforesaid. (2) Subject to the laws for the time being in force in the said State CSBP shall at all times in relation to such construction and establishment and in equipping and operating the said plant comply with accepted modern practice. Wharf 2 12. (1) If the State desires the Commissioners to construct or to cause to be constructed in Cockburn Sound a wharf portion of which will be suitable for the operations of CSBP BP and KNC and which portion the State shall cause the Commissioners to set aside and reserve for the operations of CSBP, BP and KNC (which portion is hereinafter referred to as the "CSBP portion") the State shall by or before the 31st day of January 1965 give notice to CSBP of its desire so to do. (2) As soon as conveniently may be after giving that notice the State will cause the Commissioners to commence or to cause to be commenced and by the 31st day of December 1968 or by such other day as CSBP nominates (provided that CSBP gives to the Commissioners not less than twelve (12) calendar months' notice of such other day) to complete or to cause to be completed the construction of the CSBP portion (providing forty (40) feet depth at low water mark) and approaches to the CSBP portion. (3) Unless CSBP advises the State by notice on or before the 31st day of July 1965 of its intention to instal on that wharf such conveyors cranes appliances and facilities as are suitable for the efficient loading and discharge of vessels at the CSBP portion for the purposes of the operations of CSBP hereunder the State will cause the Commissioners to construct and instal those conveyors cranes appliances and facilities. (4) The State will cause the CSBP portion to be constructed in such location and in accordance with such plans and specifications as are to the reasonable satisfaction of CSBP and BP. (5) The State will at all times during the currency of this Agreement cause the Commissioners to maintain or to cause to be maintained in good order and condition the CSBP portion and the approaches thereto constructed under this clause. (6) If the CSBP portion is constructed pursuant to the provisions of this clause then CSBP, BP and KNC will respectively pay to Commissioners for their respective goods which are discharged upon or over or shipped from the CSBP portion the appropriate prescribed wharf charges applicable to the Inner Harbour cargoes except that for the period expiring on the 1st day of January 1988 in respect of bulk cargoes the wharf charges shall not be in excess of 2/9 per ton unless the inward general cargo rate for the Inner Harbour is increased above 13/6 per ton and from the date or respective dates of any such increase or increases the bulk wharf charges will increase in like proportion. (7) Where and to the extent that the CSBP portion may be used by third parties without unduly hindering the operations of CSBP BP and KNC hereunder (a matter which shall be within the sole determination of CSBP) CSBP will permit the CSBP portion to be used by any other person or corporation for the handling of inward and outward cargo upon terms and conditions (including charges) to be determined by the Commissioners from time to time. CSBP's wharf 2 13. (1) If the State is not desirous of constructing or causing to be constructed the wharf referred to in and pursuant to the provisions of clause 12 hereof then CSBP at its own expense and risk in all things but in close liaison with the Commissioners shall construct with all convenient speed a wharf suitable for the operations of CSBP hereunder but in all things subject to the approval of the Commissioners. Any dispute or difference between CSBP and the Commissioners under this clause shall be referred to and determined by the Minister whose decision shall be final and binding for all purposes. (2) CSBP will at all times maintain in good order and condition the wharf and shore approaches within Area D and be responsible for proper insurance thereof. (3) Where and to the extent that the wharf may be used by third parties without unduly hindering the operations of CSBP hereunder (a matter which shall be within the sole determination of CSBP) CSBP will permit the wharf to be used by any other person for the handling of inward and outward cargo upon terms and conditions (including charges) to be determined by the Commissioners from time to time provided however, that the collection and allocation of charges as between CSBP and the Commissioners shall be determined by mutual agreement between CSBP and the Commissioners. (4) Subject to the provisions hereof and to the control of the Commissioners in the discharge of their statutory functions and powers CSBP shall be entitled to use the wharf for its purposes hereunder and to control and manage it free of rental or license fee. (5) CSBP will indemnify and keep indemnified the State against all actions claims costs and demands (not based on or arising out of the negligence of the State its agents servants or third party contractors) arising out of or in connection with the construction maintenance or use of its wharf and the operations on and from its wharf. (6) BP and KNC shall each have the right to use CSBP's wharf upon the same terms and conditions as are made available to CSBP by the Commissioners. (7) Within 6 months after the end or sooner determination of the currency of this Agreement CSBP may (except in so far as the State and CSBP may otherwise in writing mutually agree and subject to the next succeeding subclause) remove and carry away from the wharf (whether constructed under this or the immediately preceding clause) such plant equipment and removable buildings as it has installed constructed or placed thereon and shall fill in and consolidate and level off all holes and excavations thereby resulting and if within such period of 6 months CSBP fails so to consolidate and level off the State may so consolidate and level off and CSBP shall on demand pay to the State the amount of the costs and expenses so incurred and the plant equipment and removable buildings not removed by CSBP within the period aforesaid shall become the absolute property of the State. (8) In the event of CSBP deciding to remove the said plant equipment and removable buildings it shall not do so without first notifying the State in writing of that decision and thereby granting to the State an option exercisable within 3 months of the service of such notice to purchase at valuation in situ the said plant equipment and removable buildings or any of them. Such valuation if not mutually agreed shall be made by such competent valuer as the State and CSBP may appoint or failing agreement as to such appointment then by two competent valuers one to be appointed by each party or by an umpire appointed by such valuers should they fail to agree. Electricity 2 14. Subject to reasonable notice in writing from time to time of CSBP's requirements as to industrial electric power for both construction and operations purposes hereunder The State Electricity Commission of Western Australia will supply to the boundary of Area D fifty (50) cycle power on the Commission's terms and conditions for the time being for industrial users in the Metropolitan Area for the supply of such power to meet CSBP's reasonable requirements in that regard but not exceeding 25,000 k.v.a. at any time without the Commission's consent. Sea water 2 15. CSBP may at its own cost in all things draw and use sea water for cooling purposes in its operations hereunder from such positions in Cockburn Sound as the Commissioners shall from time to time approve. Sea water so drawn may be returned to the sea in such positions as aforesaid admixed with effluent from manufacturing operations hereunder provided that the discharge is not dangerous or injurious to public health. Potable water 2 16. (1) Subject to reasonable notice in writing from time to time of CSBP's requirements as to potable water for its purposes hereunder the Metropolitan Water Sewerage and Drainage Board shall provide to the boundary of Area D on that Board's terms and conditions for the time being prevailing for excess water supplied for industrial purposes such quantities of potable water as will meet CSBP's reasonable requirements in that regard but not exceeding two million (2,000,000) gallons in any one week without the said Board's consent. (2) The State agrees that CSBP may sink on Area D such wells and bores into the sub‑soil as CSBP thin