Western Australia: Uranium (Yeelirrie) Agreement Act 1978 (WA)

Western Australia Uranium (Yeelirrie) Agreement Act 1978 Western Australia Uranium (Yeelirrie) Agreement Act 1978 Contents 1. Short title 1 2. Interpretation 1 3. Ratification of the Agreement 1 3A. Variation Agreement ratified 1 4. By‑laws 2 First Schedule — Uranium (Yeelirrie) Agreement Second Schedule — Variation Agreement Notes Compilation table 82 Defined terms Western Australia Uranium (Yeelirrie) Agreement Act 1978 An Act to ratify an Agreement between the State of Western Australia and Western Mining Corporation Limited with respect to the mining and treatment of certain uranium ore reserves. 1. Short title This Act may be cited as the Uranium (Yeelirrie) Agreement Act 1978. 2. Interpretation In is Act — the Agreement means the Agreement a copy of which is set out in the First Schedule to this Act and includes that Agreement as so altered from time to time in accordance with its provisions or, except in section 3, by the Variation Agreement; the Corporation has the same meaning as it has in the Agreement; the Variation Agreement" means the Agreement a copy of which is set out in the Second Schedule to this Act. [Section 2 amended: No. 40 of 1982 s.2.] 3. Ratification of the Agreement The Agreement is hereby ratified and its implementation authorized. 3A. Variation Agreement ratified The Variation Agreement is ratified and its implementation authorized. 4. By‑laws The Governor may, on the recommendation of the Corporation, make, alter and repeal by‑laws, in accordance with and for the purposes referred to in clause 23 of the Agreement, and the by‑laws — (a) shall be published in the Gazette; (b) shall take effect and have the force of law from the date they are so published or from a later date fixed by the order making the by‑laws; (c) may prescribe penalties not exceeding one hundred dollars for a breach of any of the by‑laws; (d) are not subject to section 3 of the Interpretation Act 1918, but shall be laid before each House of Parliament within the six sitting days of such House next following the publication of the by‑laws in the Gazette. First Schedule — Uranium (Yeelirrie) Agreement [s. 2] [Heading amended: No. 40 of 1982 s.4; No. 19 of 2010 s. 4.] THIS AGREEMENT made this first day of November 1978 BETWEEN THE HONOURABLE SIR CHARLES WALTER MICHAEL COURT, 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 WESTERN MINING CORPORATION LIMITED a company duly incorporated in the State of Victoria and having its registered office in that State at 459 Collins Street, Melbourne and having its principal office in the State of Western Australia at 181 Great Eastern Highway, Belmont (hereinafter referred to as "the Corporation" which term shall where the context so admits or requires extend to and include the Corporation its successors and assigns or such of them who for the time being are entitled to the benefit of, or who are required to fulfil the obligations of the Corporation under this Agreement), of the other part. WHEREAS: (a) The Corporation has established the existence of an are body containing in excess of 20 million tonnes of commercial grade uranium ore. (b) The Corporation intends to establish a metallurgical research plant at Kalgoorlie at a cost in excess of $7 million and under a programme estimated to cost approximately $6 million to test such ore. (c) The Corporation is currently investigating the economic feasibility of constructing a uranium and vanadium treatment plant at Yeelirrie with a capacity to treat 1.21 million tonnes of ore per year to produce uranium oxide (yellow‑cake) and vanadium oxide (red‑cake) for export through a port or ports in Western Australia. (d) The Corporation intends to provide facilities and services necessary for the accommodation health safety and welfare of its workforce and to take adequate measures to safeguard the public and the environment in its operation under this Agreement. (e) The Corporation has in respect of both the proposed metallurgical research plant and the uranium vanadium treatment plant submitted environmental review and management programmes to the State for consideration. (f) The Corporation is currently negotiating with Esso Exploration and Production Australia Inc., a company duly incorporated in the State of Delaware in the United States of America and having its principal office in Australia at 127 Kent Street, Sydney and Urangesellschaft Australia Pty. Limited a company duly incorporated in Victoria and having its registered office at 608 St. Kilda Road, Melbourne for the joint development with a wholly owned subsidiary of Western Mining Corporation Limited (to be incorporated in Western Australia) of the project referred to in this Agreement. NOW THIS AGREEMENT WITNESSETH: 1. In this Agreement subject to the context — "advise", "apply", "approve", "approval", "consent", "certify", "direct", "inform", "notify", "request" or "require" means advise, apply, approve, approval, consent, certify, direct, inform, notify, request or require in writing as the case may be; "Agnew minesite" means the minesite referred to in the agreement ratified by the Nickel (Agnew) Agreement Act 1974; "associated company" means — (a) any company or corporation having a paid up capital of not less than $2 000 000 notified by the Corporation to the Minister which is incorporated or formed within the United Kingdom, the United States of America, Australia, the Federal Republic of Germany or such other country as the Minister may approve and which — (i) is promoted by the Corporation (or by a wholly owned subsidiary of the Corporation having a Paid up capital of not less than $2 000 000) for all or any of the purposes of this Agreement and in which the Corporation or such wholly owned subsidiary of the Corporation, or some other company 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, 1081, to any company or corporation in which the Corporation 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 Corporation as being such a company; or (b) any company or corporation approved by the Minister; "Clause" means a clause of this Agreement; "commencement date" means the date on which the Corporation gives to the Minister the notice mentioned in subclause (1) of Clause 4; "Commonwealth" means the Commonwealth of Australia and includes the Government for the time being thereof; "Land Act" means the Land Act 1933; "mineral claim" means a mineral claim granted pursuant to regulations made under the Mining Act or any mining right (other than the mineral lease granted pursuant to this Agreement) granted in substitution therefor under any amendment to the Mining Act or any Act passed in substitution therefor or in lieu thereof and the regulations for the time being in force thereunder; "mineral lease" means the mineral lease referred to in Clause 21 and includes any renewal thereof and according to the requirements of the context shall describe the area of land demised as well as the instrument by which it is demised; "Mining Act" means the Mining Act 1904; "mining areas" means the areas bordered red (hereinafter called "the red areas") on the plan marked "A" (initialled by or on behalf of the parties hereto for the purposes of identification); "Minister" means the Minister in the Government of the State for the time being responsible (under whatsoever title) for the administration of the ratifying Act and pending the passing of the Act means the Minister for the time being designated in a notice from the State to the Corporation and includes the successors in office of 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; "ore" means ore containing uranium and/or vanadium from the mineral lease; "person" or "persons" includes bodies corporate; "private road" means a road (not being a public road) which is either constructed by the Corporation in accordance with its proposals as approved by the Minister hereunder or agreed by the parties to be a private road for the purposes of this Agreement; "process water" means water used in the treatment plant; "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; "ratifying Act" means the Act to ratify this Agreement and referred to in Clause 3; "red‑cake" means a vanadium oxide product obtained from the treatment of ore; "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; "this Agreement" "hereof" and "hereunder" refers to this Agreement whether in its original form or as from time to time added to varied or amended; "town" means the town to be developed by the Corporation as the principal housing area for its workforce with the approval of the State and may include an existing town; "townsite" means the site on which the town is to be situated; "treatment plant" means a plant for treating ore to produce yellow‑cake and associated by‑products and red‑cake; "yellow‑cake" means a uranium oxide product obtained from the treatment of ore. Interpretation 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 37 to extend any period or date shall be without prejudice to the power of the Minister under Clause 37: (c) marginal notes do not affect the interpretation or construction; and (d) reference to an Act unless otherwise specifically expressed 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 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 the 31st December, 1978; and (b) to the extent reasonably necessary for the purposes of this Agreement allow the Corporation to enter upon Crown lands (including, if applicable, land the subject of a pastoral lease). Commencement and Operation 4. (1) The provisions of this Agreement other than Clauses 1, 2, 3 and this Clause shall not come into operation until — (a) the Bill referred to in Clause 3 has been passed by the Parliament of Western Australia and comes into operation as an Act; and (b) the Corporation has given the Minister notice that it desires to proceed with the objects of this Agreement. (2) When this Agreement comes into operation in the manner provided in subclause (1) of this Clause all the provisions of this Agreement shall operate and take effect notwithstanding the provisions of any Act or law. (3) If before 31st December, 1979 (or such later date as the Minister may at the request of the Corporation approve) the notice referred to in subclause (1) of this Clause is not given, this Agreement will then cease and determine and neither of the parties will 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. Creation of temporary reserve 5. (1) The State shall on the commencement date create a temporary reserve over all the Crown land within the red areas on the said plan marked "A". (2) As soon as the temporary reserve referred to under subclause (1) of this Clause has been created, the Corporation shall apply for and the State shall grant to it for a period terminating on the date the Corporation surrenders to the state the balance of its blue mineral claims referred to in paragraph (c) of subclause (7) of Clause 21 or the sooner determination of this Agreement, rights of occupancy for the purposes of this Agreement in respect of such land on such terms and conditions as the Minister for Mines may determine. (3) The provisions of the Mining Act shall be deemed to be modified to permit the creation of the temporary reserve under subclause (1) of this Clause and the grant of the rights of occupancy under subclause (2) of this Clause. Initial obligations of the Corporation 6. (1) The Corporation shall continue its field and office engineering and metallurgical processing studies and market and finance studies and other matters necessary to enable it to finalise and to submit to the Minister the detained proposals and other matters referred to in subclauses (1) and (4) of Clause 8. (2) The Corporation shall keep the State fully informed at least quarterly as to the progress and results of its operations under subclause (1) of this Clause. The first quarterly report shall be lodged during the month of April, 1979 and shall be in respect of the quarter ending on the 31st day of March, 1979 and thereafter the quarterly reports shall be in respect of the quarter ending on the last day of the month preceding the month in which they are lodged. (3) The Corporation shall co‑operate with the State and consult with the representatives or officers of the state regarding matters referred to in subclause (1) of this Clause and any other relevant studies in relation to that subclause that the Minister may wish to undertake. Metallurgical research plant 7. (1) The Corporation may with the prior approval of the State construct a metallurgical research plant at Kalgoorlie to test ore and to have such plant in operation by 30th June, 1982. (2) For the purposes of the construction and operation of the metallurgical research plant referred to in subclause (1) of this Clause, the State shall, on application by the Corporation, grant to the Corporation or arrange to have the appropriate authority or other interested instrumentality of the State grant, for such periods and on such terms and conditions (including renewal rights) as shall be reasonable having regard to the requirements of the Corporation — (a) a special lease under the Land Act of land at a site to be agreed for the said plant; (b) a pipeline easement for water over a route to be agreed from Addis Street Kalgoorlie to the said plant; (c) a powerline easement over a route to be agreed to connect with the Corporation's existing Great Boulder‑Scotia powerline and the said plant; (d) a tailings licence under the Mining Act for disposal of tailings from the said plant by burial; (e) a licence under the Transport Commission Act 1888 to transport by road ore and water from the Yeelirrie region to the said plant; (f) a licence under the Rights in Water and Irrigation Act 1914 to draw water from underground sources in the Yeelirrie region for transport to the said plant for experimental purposes. Corporation to submit Proposals 8. (1) On or before the 31st December, 1982 (or thereafter within such extended time as the Minister may allow as hereinafter provided) and subject to the provisions of this Agreement the Corporation shall submit to the Minister (having due regard where applicable to the environmental review and management programmes previously submitted by the Corporation and the State's responses thereto) to the fullest extent reasonably practicable its detailed proposals (which proposals shall include plans where practicable and specifications where reasonably required by the Minister) for a mining and treatment project with a capacity to treat 1.21 million tonnes of ore per year or such other tonneage as the Minister may approve and the transport and shipment through a port or ports within the said State of the products of the treatment plant and for making provision for the necessary work force and associated population required to enable the Corporation to mine ore and to process it at the treatment plant 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) the mining and treatment of ore including the disposal of tailings; (b) roads; (c) railways; (d) facilities at ports in the said State for the purposes of this Agreement; (e) housing and township requirements (including site and lay‑out) and including social, civic and engineering services; (f) water supply; (g) power generation and distribution; (h) any leases, licences or other tenures of required from the State; (i) any other works, services or facilities desired by the Corporation; (j) airport; (k) measures for the protection of aboriginal and historic sites; (l) safety measures, including radiometric measures, for the workforce and associated population and for the transport storage and shipping of the products of the treatment plant; (m) use of local professional services, labour and materials; and (n) an environmental management programme as to measures to be taken in respect of the Corporation's operations under this Agreement for the protection and management of the environment. (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 (n) of subclause (1) of this Clause. (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 Corporation upon reasonable terms and conditions of any existing facilities of such kind. (4) At the time when the Corporation submits the said proposals it shall furnish to the reasonable satisfaction of the State evidence of — (a) the Corporation's ability to profitably sell the products of the treatment plant or a substantial proportion thereof in accordance with the said proposals; (b) the availability of finance necessary for the fulfilment of the operations to which the said proposals refer; and (c) the readiness of the Corporation to embark upon and proceed to carry out the operations referred to in the said proposals. (5) If the Corporation for any reason desires an extension of time beyond the 31st December, 1982 within which to comply with the requirements of subclause (4) of this Clause it may make a request therefor to the Minister not earlier than the 1st October, 1982 or not later than the 30th November, 1982 and with such request shall supply the Minister with details of its endeavours to comply with those requirement if the Minister is satisfied that such endeavours are reasonable in the circumstances and that the Corporation has otherwise duly complied with its obligations hereunder the Minister shall grant an extension of such time for a period of 12 months. Consideration of Proposals 9. (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 Corporation submits a further proposal or proposals in respect of some other of the matters mentioned in subclause (1) of Clause 8 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 Corporation makes such alteration thereto or complies with such conditions in respect thereto as he (having regard to the circumstances including the overall development of and the use by others as well as the Corporation of all or any of the facilities proposed to be provided) thinks reasonable and in such a case the Minister shall disclose his reasons for such conditions. (2) The Minister shall within 2 months after receipt of the said proposals give notice to the Corporation of his decision in respect to the same. (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 Corporation full opportunity to consult with him and should it so desire to submit new or revised proposals either generally or in respect to some particular matter. (4) If the decision of the Minister is as mentioned in paragraph (c) of subclause (1) of this Clause and the Corporation considers that any condition precedent is unreasonable the Corporation within 2 months after receipt of the notice mentioned in subclause (2) of this Clause may elect to refer to arbitration in the manner hereinafter provided the question of the reasonableness or the condition precedent. (5) An award made on an arbitration pursuant to sub‑clause (4) of this Clause shall have force and effect as follows — (a) if by the award the dispute is decided against the Corporation then unless the Corporation 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 Corporation 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. (6) Notwithstanding that under subclause (1) of this Clause any detailed proposals of the Corporation are approved by the Minister or determined by arbitration award, unless each and every such proposal and the other matters referred to in subclause (4) of Clause 8 are so approved or determined by the 31st December, 1984 or by such extended date if any as the Corporation shall be granted pursuant to the provisions of this Agreement then the Minister may give to the Corporation 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 39. Implementation of Proposals 10. The Corporation shall implement the approved proposals in accordance with the terms thereof and have the treatment plant in operation not later than 4 years after the date the Corporation's proposals are approved pursuant to Clause 9. Additional Proposals 11. If the Corporation at any time during the continuance of this Agreement desires to modify expand or otherwise vary its activities substantially beyond 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 (n) of subclause (1) of Clause 8 as the Minister may require. The provisions of Clauses 8 and 9 where applicable shall mutatis mutandis apply to detailed Proposals submitted pursuant to this Clause. Additional Proposals for the protection and management of the environment 12. (1) The Corporation shall, in respect of the matters referred to in paragraph (n) of subclause (1) of Clause 8 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 the protection and management of the environment. (2) The Corporation shall during the currency of this Agreement at yearly intervals commencing from the date then the Corporation'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. (3) The Minister may within 2 months of the receipt of the detailed report pursuant to subclause (2) of this Clause notify the Corporation 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 Corporation 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 9 (other than sub‑clause (5)) where applicable shall mutatis mutandis apply in respect of such proposals. (5) The Corporation shall implement the proposals when approved or determined by arbitration in accordance with the terms thereof. Compliance with Codes 13. (1) Notwithstanding any other provision of this Agreement, until by or under an Act of the Parliament of the State provision is made with respect to the matters contained in the codes described in this subclause the Corporation shall observe those codes and any amendments thereof or any codes substituted therefor — "Code of Practice on Radiation Protection in the Mining and Milling of Radioactive Ores, 1975" compiled by the Commonwealth Department of Health and published in 1917 by the Australian Government Publishing Service (International Standard Book Number ISBN 0‑642‑02994‑6) "Regulations for the Safe Transport of Radioactive Materials, 1973 Revised Edition" published by the International Atomic Energy Agency Vienna, 1973 (Publishers Code STI/PUB/323) Part 1: Code of Practice contained in pages 1 to 11 of "Management of Wastes from the Mining and Milling of Uranium and Thorium Ores" published by the International Atomic Energy Agency, Vienna 1976 (International Standard Book Number ISBN 92‑0‑123276‑4). (2) When by or under an Act of the Parliament of the State provision is made in respect of a matter contained in a code described in subclause (1) of this Clause the Corporation shall comply with that provision. Use of local professional services, labour and materials 14. (1) The Corporation 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 Corporation 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. Water 15. (1) The State and the Corporation shall agree upon the amount of the Corporation's annual average dally water requirement for its purposes hereunder comprising potable water, process water and saline water (which amount or such other amounts as shall from time to time be agreed between the parties to be reasonable are hereinafter called "the Corporation's daily water requirements"). (2) The Corporation shall at its cost and in collaboration with the State continue to search for underground water within the mining areas. Where appropriate the Corporation shall employ and retain experienced groundwater consultants. The Corporation shall furnish to the Minister details of the results of its investigations and copies of the reports of such consultants as they become available. (3) If in the opinion of the Minister, the details and reports of the consultants pursuant to subclause (2) of this Clause indicate that any source of underground water in the mining areas is likely to be inadequate or unsuitable to supply the Corporation's daily water requirements the parties hereto shall collaborate and agree on a programme which shall be carried out by and at the cost of the Corporation to search for water inside and outside the mining areas. The State may at its discretion require the Corporation to extend such water search to provide a quantity of water greater than that required to supply the Corporation's daily water requirements, but in that event, the cost of such search shall be shared by the parties hereto in such a manner as may be agreed to be fair in all the circumstances. (4) If the investigations referred to in subclauses (2) and (3) of this Clause prove to the satisfaction of the Minister the availability of any suitable underground water source in or near the mining areas which can continue to be drawn on by the Corporation without seriously affecting the water level in that water source beneath the mining areas or adjacent areas or the availability of water in the adjacent areas the State shall grant to the Corporation a licence to develop and draw from that source without cost, the Corporation's daily water requirements on such terms and conditions as are necessary to ensure good water resource management as the Minister may from time to time require and during the continuance of this Agreement grant renewals of any such licence PROVIDED HOWEVER that should that source prove hydrologically inadequate to meet the Corporation's daily water requirements, the State may on at least 6 months prior notice to the Corporation (or on at least 48 hours prior notice if in the opinion of the Minister an emergency situation exists) limit the amount of water which may be taken from that source at any one time or from time to time to the maximum which that source is hydrologically capable of meeting as aforesaid. (5) The Corporation shall provide at its cost or with finance arranged by it and construct to standards and in accordance with designs approved by the State in accordance with the relevant approved proposal all necessary bores valves pipelines meters tanks equipment and appurtenances necessary to draw transport use and dispose of water drawn from sources licensed to the Corporation under this Clause. (6) Should the State at any time pursuant to the proviso to subclause (4) of this Clause limit the amount of water to be taken from any water source or if otherwise the Corporation's daily water requirements cannot be met from any water source on a continuous basis the State shall with all reasonable expedition and in conjunction with and upon the request of the Corporation search for new or additional underground water sources with a view to restoring or ensuring the full quantity of the Corporation's daily water requirements. The Corporation shall pay to the State a fair and reasonable proportion of the cost of investigating and developing such new and additional water sources as agreed between the Corporation and the State. (7) The State shall use its best endeavours to supply the Corporation with sufficient water (subject to availability of supply from other sources and to prior commitments if any to third parties) to meet that portion of the Corporation's daily water requirements not obtainable from the water sources referred to in subclause (4) of this Clause pending the establishment of new and additional water sources pursuant to subclause (6) of this Clause on such terms and conditions as the Minister may determine after consultation with the Corporation. (8) In the event of water supplies from available underground sources proving insufficient to meet the Corporation's daily water requirements the Corporation shall notwithstanding the provisions of subclause (4) of this Clause collaborate with the State in an investigation of surface water catchments and storage dams. The Corporation shall if it proposes to utilise such surface water, water catchments and storage dams pay to the State a sum or sums to be agreed towards the cost of such investigation and towards the cost of constructing any water storage dam or dams and reticulation facilities required. (9) If during the currency of any licence granted under the provisions of this Clause the Minister is of the opinion that it would be desirable for water conservation purposes or water management purposes that sources of water licensed to the Corporation be controlled and operated by the State as part of a regional water supply scheme the Minister may on giving 6 months prior notice to the Corporation of his intention revoke that licence and acquire the Corporation's water supply facilities for a monetary consideration to be determined by the Minister. Immediately from the revocation of that licence the State shall, subject only to the continued hydrological availability of water from such sources, commence and thereafter continue to supply water to an amount and at a rate required by the Corporation being the amount and rate to which the Corporation was entitled under that revoked licence and the proviso to subclause (4) of this Clause and the provisions of subclause (6) of this Clause shall in like manner apply to this subclause. (10) The State, after first having due regard to the Corporation's daily water requirements and to the hydrological adequacy of existing water sources, may in its discretion develop all or any of the surface and/or underground water resources referred to in this Clause or construct any works in connection therewith to a greater capacity than that required to supply the Corporation's daily water requirements but in that event the Corporation shall pay to the State a share of the cost of the system as so enlarged as may be agreed between the parties to he fair in all the circumstances. (11) The State may after first having due regard to the Corporation's daily water requirements and to the hydrological adequacy of the applicable water source, upon not less than 3 months prior notice to the Corporation specifying the identity of the third party including where applicable the State and the estimated maximum daily and total quantity of water to be drawn by that third party and the period over which such drawing is to occur, grant to a third party rights to draw water or itself draw water from that water source PROVIDED HOWEVER that — (a) where the Corporation has paid (in whole or in part) any moneys in respect of the investigation development and utilisation of that water source the State shall require as a condition of the grant that where the third party is or will be a substantial drawer of water from that water source within 5 years of the commencement date the third party (but not the State) shall reimburse to the Corporation prior to the third party exercising its rights to draw water, a proportion of such moneys as the Minister determines is fair and reasonable; and (b) where the Corporation draws water from that water source the State shall ensure that it is a condition of the grant to third parties that in the event that the capacity of that water source is reduced, such reduction shall be first applied to the third parties and thereafter if further reduction is necessary the State's and the Corporation's requirements shall be reduced in such proportion as may be agreed. (12) The Corporation shall pay to the State for water supplied by the State pursuant to subclauses (8) and (9) of this Clause a fair price to be agreed between the parties hereto having regard to the actual cost of operating and maintaining the supply and provision for replacement of the water supply facilities. Notwithstanding the foregoing provisions of this subclause, in respect of water supplied by the State to the Corporation as aforesaid for domestic purposes the Corporation shall pay to the State therefor charges as levied from time to time pursuant to the provisions of the Country Areas Water Supply Act 1947. (13) The Corporation shall to the extent that it is practical and economical design construct and operate all plant required under this Clause so as to ensure the most efficient use of the water supply including the use of brackish or saline water. (14) The State shall ensure that no rights to mine minerals petroleum or other substances are granted over area of any water source from which the Corporation is drawing water or from time to time have the right to draw water hereunder unless the Minister reasonably determines that such grant is not likely to unduly prejudice or to interfere with the operations of the Corporation hereunder and is not likely to render the water source incapable of supplying the Corporation's daily water requirements on a continuous basis. (15) The Corporation may supply water to third parties including the State at a charge to be approved by the Minister after consultation with the Corporation. The Corporation shall have all the powers and authorities with respect to such water as are determined by the Minister which may include all or any of the powers of a water board under the Water Boards Act 1904 and, with the consent of the Minister for Local Government, a local authority under the Local Government Act 1960. (16) Any reference in the foregoing provisions of this Clause to a licence is a reference to a licence under the Rights in Water and Irrigation Act 1914 and the provisions of that Act relating to water rights and licences shall except where inconsistent with the provisions of this Agreement apply to any water source developed for the Corporation's purposes under this Agreement. Roads 16. Subject to the provisions of Clause 18 — (1) The Corporation shall — (a) be responsible for the provision of finance for and the construction and maintenance of all private roads which shall be used in its operations hereunder; (b) at its cost make such provision (including the erection of physical barriers) as shall ensure that all persons and vehicles (other than those engaged upon the Corporation's operations and its invitees and licencees) are excluded from use of any such private roads; and (c) at any place where such private roads are constructed by the Corporation as to cross any railways or public roads provide adequate grade separation or such other reasonable protection as may be required by the Commissioner of Main Roads or Railways Commission as the case may be. (2) If required, as a result of the operations of the parties to the Agreement ratified by the Nickel (Agnew) Agreement Act 1974 and the Corporation's operations hereunder pursuant to approved proposals the State shall construct or cause to be constructed suitable new public roads in accordance with the requirements of the Commissioner of Main Roads as follows — (a) an unsealed road from Leonora extending to a point in the vicinity of the Yakabindie Homestead (in this subclause called "the Leonora‑Yakabindie road"). That part of the Leonora‑Yakabindie road from Leonora to the turn‑off to the Agnew minesite (in this sub‑clause called "the turn‑off") shall be sealed by the State to a width of not leas than 7.4 metres and the Corporation shall pay to the State at the times and in the manner required by the State one sixth of the cost of the construction (including investigation survey and design) and of the sealing thereof. The State shall use its best endeavours to complete the construction and sealing of such part of the Leonora‑Yakabindie road from Leonora to the turn‑off prior to the date that the treatment plant comes into operation; (b) a sealed road connecting the turn‑off with the townsite. The State shall use its best endeavours to complete the construction and sealing of such road to a width of not less than 3.7 metres prior to the date that the treatment plant comes into operation. The Corporation shall pay to the State at the times and in the manner required by the State one half of the cost of the construction (including investigation survey and design) and sealing of such road; PROVIDED THAT if the roads referred to in paragraphs (a) and (b) of this sub‑clause are not required for the purposes of the nickel agreement referred to in this subclause then the parties hereto shall share equally the cost of the construction, and sealing of such road to a width of not less than 3.7 metres. The State shall use its best endeavours to complete the construction and sealing of such road prior to the date that the treatment plant comes into operation. (c) an unsealed road on a route to be determined by the Commissioner of Main Roads after consultation with the Corporation connecting the townsite with Mount Magnet and passing in to vicinity of Sandstone. Such road shall be constructed to a standard similar to the existing Lenora‑Wiluna Road. The State shall use its best endeavours to complete the construction of that portion of such road between the townsite and the junction of such road with the existing road system in the vicinity of Sandstone within 18 months of the date of the approved proposals and the balance of such road within 2 years of such date. The Commissioner of Main Roads and the Corporation shall confer with a view to minimizing the periods of time for such construction. The Corporation shall pay to the State at the times and in the manner required by the State one half of the cost of the construction (including investigation survey and design) of such road. (3) The State shall maintain or cause to be maintained public roads over which it has control (and which may be used by the Corporation) to a standard similar to comparable public roads maintained by the State. In the event that the Corporation's road haulage operations require the use of a public road which is inadequate for the purpose or results in excessive, damage or deterioration of any public road (other than fair wear and tear) the Corporation shall pay to the State the whole or 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. (4) 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 Corporation 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 for the maintenance of which the Corporation is responsible hereunder and for no other purpose the Corporation 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 Corporation; 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. Transport Railway 17. Subject to the provisions of Clause 18 — (1) Subject to the by‑laws made under the Government Railways Act 1904 (insofar as those by‑laws are not inconsistent with this Agreement) and subject to the provisions of this Clause the Corporation shall in accordance with its approved proposals consign and the State shall cause the Railways Commission to transport by rail — (a) from the port of Esperance to the railhead at Leonora all fuel oil and caustic soda in bulk; and (b) to the railhead at Leonora, insofar as practicable all other bulk commodities required for the Corporation's operations hereunder and provided such commodities are suitable for carriage in general purpose wagons. (2) The State shall use its best endeavours to complete the upgrading of the existing railway line between the railhead at Leonora and Kalgoorlie at its cost by not later than 3 months before the date the treatment plant comes into operation to achieve a 20.5 tonne axle load capacity to enable the Railways Commission to transport not less than 53,000 tonnes of caustic soda and 71,000 tonnes of fuel oil per annum. (3) The Corporation shall at Leonora and Esperance in respect of its operations if required by the Railways Commission pay or arrange finance for the provision (in accordance with plans and specifications approved by the Railways Commission after consultation with the Corporation) and maintenance of such sidings, shunting loops, spurs and other connections as are required solely for its operations hereunder and the provision and maintenance of loading and unloading facilities sufficient to meet train operating requirements and terminal equipment (including weighing devices and communication systems), together with a staff adequate to ensure the proper operation of all such loading and unloading facilities and terminal equipment. (4) The Corporation shall provide or cause to be provided sufficient wagons (including 10% spares) to a design and specification approved by the Railways Commission to carry all caustic soda and fuel oil from the port of Esperance to Leonora and necessary replacements therefor. (5) Subject to the provisions of subclauses (3) and (4) of this Clause the Railways Commission shall at its own cost provide, maintain and service all railways, locomotives, brakevans and wagons necessary and suitable for the purposes of this Agreement. (6) The Corporation shall provide to the satisfaction of the Railways Commission adequate notice in advance of its requirements (including anticipated tonneages in each year) as to the use of the railway to enable the Railways Commission to meet those requirements and shall thereafter give not less than 18 months prior notice of any substantial change in those requirements. In particular the Corporation shall agree with the Railways Commission the pattern of working including weekly and monthly despatches and the hours of working. (7) All commodities transported by the Railways Commission pursuant to this Clause shall be carried subject to the by‑laws made under the Government Railways Act 1904 (insofar as those by‑laws are not inconsistent with this Agreement) and to the provisions of this Clause and as though accepted for carriage at the owner's risk pursuant to general condition 2 (b) contained in the Schedule to by‑law 55 as in force at the date hereof. (8) The Corporation shall pay to the State freight in respect of all commodities specified in the First Schedule hereto carried by the Railways Commission pursuant to this Agreement at the appropriate freight rates and in the manner and subject to the conditions set out in that Schedule. (9) The Corporation shall as required collaborate with the State in the planning of a road‑rail interchange at Leonora. (10) The Corporation shall transport its products by road (or such other means as the Minister may approve) from the treatment plant to the port of Fremantle (or to such other port or ports as the Minister may approve) and for this purpose the Commissioner of Transport shall issue licences for road carriage upon request by the Corporation and upon payment of the licence fees prescribed by him under the Transport Commission Act 1966. Alternative routes 18. (1) Notwithstanding the provisions of subclause (2) of Clause 16 and subclauses (1), (3) and (4) of Clause 17 the Corporation may, after consultation with the Railways Commission prior to the submission of proposals pursuant to Clause 8, request the Minister to permit the Corporation to transport its requirements of — (a) caustic soda and fuel oil in bulk by road from Geraldton to the treatment plant; and (b) insofar as practicable all other bulk commodities by rail from Kewdale to the railhead at Mullewa and thence by road to the treatment plant subject to the conditions set out in subclause (5) of this Clause. (2) If the Minister is satisfied that, on a comparison of the Corporation's obligations under subclause (2) of Clause 16 and subclauses (1), (3) and (4) of Clause 17 (or any modification thereof proposed by the Railways Commission in consultation with the Corporation under sub‑clause (1) of this Clause) with its obligations under subclause (5) of this Clause (and having regard to the provisions of Clause 19), the obligations of the Corporation under the said subclause (5) might be undertaken by the Corporation more economically to the Corporation; then the Minister shall grant the Corporation's request. (3) The Minister shall within 2 months after receipt of the Corporation's request advise the Corporation of his decision. (4) If the Corporation disagree with the Minister's decision the Corporation may refer the matter to arbitration and the award made on any such arbitration shall be binding on the parties hereto. (5) The conditions applicable to the alternative routes referred to in subclause (1) of this Clause are as follows — (a) Subject to the by‑laws made under the Government Railways Act 1904 (insofar as those by‑laws are not inconsistent with this Agreement) and subject to the provisions of this Clause the Corporation shall in accordance with its approved proposals consign, and the State shall cause the Railways Commission to transport by rail from Kewdale to the railhead at Mullewa insofar as practicable all bulk commodities (but excluding fuel oil and caustic soda in bulk) required for the Corporation's operations hereunder and provided such commodities are suitable for carriage in general purpose wagons. (b) The Corporation shall at Mullewa in respect of its operations if required by the Railways Commission pay or arrange finance for the provision (in accordance with plans and specifications approved by the Railways Commission after consultation with the Corporation) and maintenance of such sidings, shunting loops, spurs and other connections as are required solely for its operations hereunder and the provision and maintenance of loading and unloading facilities sufficient to meet train operating requirements and terminal equipment (including weighing devices and communication systems), together with a staff adequate to ensure the proper operation of all such loading and unloading facilities and terminal equipment. (c) The Corporation shall transport its requirements of caustic soda and fuel oil in bulk by road from Geraldton to the treatment plant and for this purpose the Commissioner of Transport shall issue licences for road carriage upon request by the Corporation and upon payment of the licence fees prescribed by him under the Transport Commission Act 1966. (d) The State shall construct or cause to be constructed new public roads suitable for the Corporation's operations hereunder in accordance with the requirements of the Commissioner of Main Roads as follows — (i) a sealed road connecting the townsite with Mount Magnet by the shortest practicable route having regard to the provision of access to Sandstone. The State shall use its best endeavours to complete the construction and sealing of such road to a width of not less than 3.7 metres within 3 years of the date of the approved proposals. The Corporation shall pay to the State at the times and in the manner required by the State three quarters of the cost of the construction (including investigation survey and design) and sealing of such road; and (ii) an unsealed road on a route to be determined by the Commissioner of Main Roads after consultation with the Corporation from the townsite to a point on the Leonora‑Yakabindie road being the turn‑off to the Agnew minesite. The Corporation shall pay to the State at the times and in the manner required by the State one half of the cost of the construction (including investigation survey and design) thereof. The State shall use its best endeavours to complete the construction of such road prior to the date that the treatment plant comes into operation. (6) The Corporation shall if it proceeds pursuant to subclause (5) of this Clause collaborate as required with the State in the planning of a road‑rail interchange at Mullewa. (7) The Corporation shall if it proceeds pursuant to subclause (5) of this Clause comply with the provisions is of subclauses (1), (3) and (4) of Clause 18 and subclauses (6) (7) (8) and (10) of Clause 17. Port 19. (1) The Corporation shall — (a) ship in its requirements of fuel oil and caustic soda through the ports of Esperance or Geraldton or such other port or ports as the Minister may approve; and (b) ship out its products from the treatment plant through the port of Fremantle or such other port or ports as the Minister may approve and for the purposes of this clause shall provide or cause to be provided at no cost to the State all such facilities as are necessary. (2) Notwithstanding subclause (1) of this Clause, the Corporation may negotiate with third parties already operating at the port of Esperance or Geraldton or such other port or ports as the Minister may approve with a view to sharing at no cost to the State port facilities already provided by others. (3) The Corporation shall pay to the appropriate Port Authority all relevant charges properly and lawfully levied by that authority from time to time. Electricity 20. (1) For the purposes of facilitating integration of electricity generation and transmission faculties in areas where the Corporation operates, the Corporation shall purchase electricity if available from the State Energy Commission or, negotiate with the State Energy Commission for the payment by the Corporation of an equitable contribution towards the augmentation of the facilities of the State Energy Commission to enable it to supply electricity to the Corporation. Electricity supplied to the Corporation pursuant to this subclause shall be at the standard tariff applicable from time to time. (2) In the event of the Corporation demonstrating to the satisfaction of the Minister that the provisions of sub‑clause (1) of this Clause would be unduly prejudicial to its operations, or if the State Energy Commission is unable to provide supply, the Corporation may — (a) in accordance with its approved proposals hereunder and subject to the provisions of the Electricity Act and the approval and requirements of the State Energy Commission, install and operate without cost to the State, at an appropriate location equipment to generate electricity of sufficient capacity for its operations hereunder; (b) transmit power within the mining areas and from the mining areas to the town or elsewhere subject to the provisions of the Electricity Act and the approval and requirements of the State Energy Commission; and (c) subject to the provisions of the Electricity Act and the requirements of the State Energy Commission sell power transmitted pursuant to paragraph (b) of this subclause to third parties within the mining areas and to third parties elsewhere. (3) In the event that the Corporation is unable to procure easements or other rights over laid required for the purposes of subclause (2) of this Clause on reasonable terms the State shall assist the Corporation to such extent as may be reasonably necessary to enable it to procure the said easements or other rights over land. (4) Notwithstanding the provisions of the State Energy Commission Act the State may at any time give to the Corporation 12 months notice of its intention to acquire and may thereafter acquire the Corporation's electricity facilities or any part thereof up to the first point of voltage breakdown or such other appropriate point as may be agreed, at a price to be agreed between the parties and the Corporation shall take all such steps as may be necessary to effect the acquisitions. The State undertakes that in such event the Corporation shall for its purposes hereunder have such priority on the power generated and transmitted by such electricity facilities so acquired as is agreed between the State and the Corporation at the time of the said acquisition and the State undertakes subject only to its inability to supply power for any of the reasons set forth in Clause 36 to supply the Corporation with power for its purposes hereunder up to the normal continuous full load capacity (after allowing for standby plant) of the electricity facilities so acquired and that in the event of such inability to supply power occurring the State shall take all possible steps to restore such supply regardless of the time or day when such inability arises and may call upon the Corporation to provide employees for that purpose at the State's expense. (5) In the event of the State acquiring the Corporation's electricity facilities the Corporation shall pay to the State Energy Commission the cost of all electricity supplied to the Corporation by the State Energy Commission at a rate equal to the standard tariff from time to time applying to the State Energy Commission's system. In the event that the Corporation's cost of operating the electricity facilities (including inter alia appropriate capital charges) at the time of the said acquisition is less than the standard tariff time to time applying, then the State Energy Commission and the Corporation shall negotiate such reduction in tariff from time to time as will ensure that the cost of electricity to the Corporation is no more than the cost it would have paid had it continued to operate such electricity facilities. The State Energy Commission's rate for electricity supplied determined as aforesaid shall apply only in respect of an amount of electricity equal to the continuous full load capability (after allowing for standby plant) of the electricity facilities so acquired and the Corporation shall pay for all electricity supplied to it by the State Energy Commission in excess of such amount at the State Energy Commission's standard tariff applicable from time to time. Should the Corporation desire to expand its operations hereunder and for that purpose require power beyond the continuous full load capacity of the electricity facilities so acquired the Corporation shall give to the State 30 months' notice of its additional power requirements and the State shall thereupon cause the State Energy Commission to negotiate with the Corporation the terms and conditions under which the additional generating capacity required to meet the needs of such expansion may be implemented. (6) Should the Corporation's relevant approved proposal provide for the State Energy Commission to reticulate electricity to houses occupied by the Corporation's workforce and by any other persons connected directly with the Corporation's operations whether employees or not and to commercial establishments directly connected with such operations, the Corporation shall sell to the State Energy Commission in bulk electricity in sufficient quantities to meet the needs of such workforce persons and establishments at a price equal to the Corporation's actual cost of generating and transmitting such electricity including, inter alia, appropriate capital charges. (7) If the State Energy Commission desires to purchase power for its own use and the Corporation has the ability to supply such power, the Corporation shall use its best endeavours to supply under such terms and conditions to be negotiated between the State Energy Commission and the Corporation, and the Corporation shall in that event be empowered to supply such power. Mineral Lease 21. (1) On application made by the Corporation, not later than 3 months after all its proposals hereunder have been approved and the Corporation has complied with the provisions of subclause (4) of Clause 8, for a mineral lease in part or parts over that part of the mining areas being more particularly all the area hatched yellow (hereinafter called "the yellow area") on the said plan marked "A" the State shall upon the surrender by the Corporation of all mineral claims held by it at the date hereof in the yellow area cause to be granted to the Corporation at the rental specified from time to time in the Mining Act a mineral lease of such land so applied for (notwithstanding that the survey in respect thereof has not been completed but subject to such corrections to accord with the survey when completed at the Corporation's expense) such mineral lease to be granted under and, except as otherwise provided in this Agreement, subject to the Mining Act but in the form of the Second Schedule hereto and in respect of the minerals set out therein and subject to such of the conditions of the surrendered mineral claims as the Minister for Mines determines and such other conditions as the Minister for Mines may reasonably require from time to time for the purpose of reducing or making good injury to the surface of the land in the mineral lease or injury to anything on or below the surface of that land. (2) Subject to the performance by the Corporation of its obligations under this Agreement and the Mining Act and notwithstanding any provisions of the Mining Act to the contrary, the term of the mineral lease shall be for a period of 21 years commencing from the date of receipt of application with the right during the currency of this Agreement to take successive renewals of the said term each for a period of 21 years upon the same terms and conditions subject to the sooner determination of the said term upon the cessation or determination of this Agreement such right to be exercisable by the Corporation making written application for any such renewal not later than 1 month before the expiration of the current term of the mineral lease. (3) The State shall ensure that during the currency of this Agreement and subject to compliance with its obligations hereunder the Corporation shall not be required to comply with the labour conditions imposed by or under the Mining Act in regard to the mineral lease. (4) The State shall not during the currency of this Agreement register any claim or grant any lease or other mining tenement under the Mining Act or otherwise by which any person other than the Corporation or an associated company will obtain under the laws relating to mining or otherwise any rights to mine or take the natural substances (other than petroleum as defined in the Petroleum Act 1967) within the mineral lease and so long as the Temporary Reserve created pursuant to Clause 5 remains in force, within that Temporary Reserve and within the areas of any blue mineral claims or surrendered blue mineral claims (as defined in sub‑clause (7) of this Clause) which are not included in the mineral lease. (5) Subject to compliance with the requirement of any Act Regulation or By‑Law from time to time in force the Corporation may for the purposes of this Agreement remove stone sand clay or gravel from the mineral lease. (6) Notwithstanding the provision of this Clause the Corporation may with the consent of the Minister for Mines from time to time (with abatement of future rent in respect to the area surrendered but without any abatement of the rent already paid or any rent which has become due and has been paid in advance) surrender to the State all or any portion or portions (of reasonable size and shape) of the mineral lease. (7) In respect of mineral claims which the Corporation holds over the areas bordered blue on the said plan marked "A" (in this Clause called "blue mineral claims") at the date application is made for a mineral lease pursuant to subclause (1) of this Clause (in this Clause called "the application date") — (a) The State shall ensure that subject to compliance with its obligations under this Agreement the Corporation shall not be required to copy with the labour conditions imposed by the Mining Act. (b) The Corporation shall continue to carry out a programme of exploration in respect of the blue mineral claims and report on the results of such exploration to the Minister for Mines at yearly intervals after the application date. (c) The Corporation may surrender all or any of the blue mineral claims during a period of 5 years following the date the treatment plant comes into operation on any anniversary of the application date, and at the end of such period shall surrender all other blue mineral claims held by it. (8) The Corporation shall have the right in respect of blue mineral claims surrendered, at the respective times of surrender referred to in paragra