Mineral Sands (Eneabba) Agreement Act 1975 (WA)

Western Australia Mineral Sands (Eneabba) Agreement Act 1975 Western Australia Mineral Sands (Eneabba) Agreement Act 1975 Contents 1. Short title 1 2. Interpretation 1 3. Ratification of the Agreement 1 4. Variation Agreement 2 5. 2008 Variation Agreement 2 Schedule 1 — Mineral Sands (Eneabba) Agreement Schedule 2 — Variation Agreement Schedule 3 — The 2008 Variation Agreement Notes Compilation table 81 Defined terms Western Australia Mineral Sands (Eneabba) Agreement Act 1975 An Act to ratify an agreement between the State of Western Australia and Allied Eneabba Pty. Ltd. with respect to the mining and concentrating of mineral sands and the production of heavy minerals. 1. Short title This Act may be cited as the Mineral Sands (Eneabba) Agreement Act 1975 1. [Section 1 amended: No. 61 of 1988 s. 4.] 2. Interpretation In this Act unless the contrary intention appears — the 2008 Variation Agreement means the agreement a copy of which is set out in Schedule 3; the Agreement means the agreement a copy of which is set out in Schedule 1 and, if that agreement is altered in accordance with the provisions thereof, includes the agreement as so altered from time to time; the Variation Agreement means the agreement a copy of which is set out in Schedule 2. [Section 2 inserted: No. 61 of 1988 s. 5; amended: No. 45 of 2008 s. 4.] 3. Ratification of the Agreement The Agreement is hereby ratified. 4. Variation Agreement (1) The Variation Agreement is ratified and its implementation is authorised. (2) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the Variation Agreement shall operate and take effect notwithstanding any other Act or law. [Section 4 inserted: No. 61 of 1988 s. 6.] 5. 2008 Variation Agreement (1) The 2008 Variation Agreement is ratified and its implementation is authorised. (2) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the 2008 Variation Agreement operates and takes effect despite any other Act or law. [Section 5 inserted: No. 45 of 2008 s. 5.] Schedule 1 — Mineral Sands (Eneabba) Agreement [s. 2] [Heading amended: No. 61 of 1988 s. 8; No. 19 of 2010 s. 4.] THIS AGREEMENT made this 27th day of June, 1975 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 ALLIED ENEABBA PTY. LTD. a company incorporated under the Companies Act of the State of Western Australia and having its registered office situate at 283 Rokeby Road Subiaco (hereinafter called "the Company" in which term shall be included the Company and its successors and permitted assigns and appointees) of the other part. WHEREAS: (a) the Company has established the existence of a heavy mineral sands ore body near Eneabba; (b) the Company has constructed at a cost in excess of $1 000 000 a pilot plant at Eneabba to establish the methods to be adopted in the mining, concentration and separation of the heavy minerals and the design engineering and economic feasibility of a mining and treatment project and has commenced the construction of a plant with a designed capacity to produce not less than 450 000 tonnes per year of heavy minerals at a capital cost in excess of $16 000 000; (c) the Company now desires to mine and concentrate ore at Eneabba, to transport heavy mineral concentrates by rail to Meru for separation into heavy minerals and to transport heavy minerals to the port of Geraldton for shipment; (d) the Company has obtained the finance necessary to implement the said project; (e) the Company has entered into long term contracts for the sale overseas of heavy minerals; (f) the State requires the Company, subject to the provisions of this Agreement, to pursue actively and progressively a policy leading ultimately to the processing in Western Australia of heavy minerals to the maximum degree possible. NOW THIS AGREEMENT WITNESSETH: 1. In this Agreement subject to the context — "advise", "apply", "approve", "approval", "consent", "certify", "direct", "notify", "request" or "require" means advise, apply, approve, approval, consent, certify, direct, notify, request, or require in writing as the case may be; "approved project" means the project referred to in recitals (b) and (c) of this Agreement and more specifically described in a bound volume marked "B" (initialled by or on behalf of the parties hereto for the purposes of identification); "associated company" means — (a) any company or corporation providing for the purpose of this Agreement capital of not less than $2 000 000 which is incorporated or formed within the United Kingdom, the United States of America or Australia or such other country as the Minister may approve and which — (i) is promoted by the Company for all or any of the purposes of this Agreement and in which the Company or some other company or corporation acceptable to the Minister has not less than a 25% interest or some lesser interest acceptable to the Minister; or (ii) is related within the meaning of that term as used in section 6 of the Companies Act 1961, to any company or corporation in which the Company or some other company or corporation acceptable to the Minister holds not less than 25% of the issued ordinary share capital and (iii) is notified to the Minister by the Company as being such a company; (b) any company or corporation approved in writing by the Minister; "Clause" means a clause of this Agreement; "commencement date" means the date the Bill referred to in Clause 3 comes into operation as an Act; "Commonwealth" means Commonwealth of Australia and includes the Government for the time being thereof; "common inloading system" means the mineral sands iron ore handling system extended by the Geraldton Port Authority pursuant to Clause 19(3) for the purpose of train unloading and conveying heavy minerals and heavy mineral products to the respective stockpile areas of the Company and other companies shipping heavy minerals and heavy mineral products through the port; "common materials handling system" means the common inloading system extended by the Geraldton Port Authority pursuant to Clause 19(3) for the purpose of conveying heavy minerals and heavy mineral products directly to the shiploader from the respective stockpile areas of the Company and other companies shipping heavy minerals and heavy mineral products through the port; "concentration plant" means the plant being constructed by the Company near Eneabba for the concentration of ore into heavy mineral concentrates; "heavy minerals" means titaniferous minerals (including ilmenite rutile and leucoxene) and magnetite zircon monazite kyanite staurolite xenotime and garnet resulting from the separation of heavy mineral concentrates; "heavy mineral concentrates" means ore concentrated prior to separation into component heavy minerals; "heavy mineral products" means the products resulting from secondary processing; "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 a mineral lease) 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 15 and includes any renewal thereof and according to the context shall describe the area of land demised as well as the instrument by which it is demised; "mineral sands‑iron ore handling system" means the handling system at the port of Geraldton constructed for the purposes of the WMC Joint Venturers under the Iron Ore (Tallering Peak) Agreement Act 1964 and to be modified by the WMC Joint Venturers for the purposes of handling heavy minerals and heavy mineral products for Western Titanium Ltd. and WMC Mineral Sands Limited through the port; "Mining Act" means the Mining Act 1904; "mining areas" means the areas delineated and coloured 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) over which the Company as at the date hereof holds mineral claims together with such of the areas delineated and coloured yellow (hereinafter called "the yellow areas") on the said plan over which mineral claims may at any time within 3 years after the date of commencement of the mineral lease, be granted to the Company by the Minister for Mines or transferred to the Company with the approval of that Minister; "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 Company 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 any rock soil or sand bearing heavy minerals mined from the mineral lease; "person" or "persons" includes bodies corporate; "port" means the existing port of Geraldton, or with the consent of the Minister any other port that may be established near Geraldton under the control of the Geraldton Port Authority; "private road" means a road (not being a public road) which is either constructed by the Company for the purposes of the approved project and where applicable in accordance with an approved proposal hereunder or agreed by the parties to be a private road for the purposes of this Agreement; "public road" means a road as defined by the Traffic Act 1919; "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 4; "said State" means the State of Western Australia; "secondary processing" means the processing of heavy minerals in the said State to substantially enhance their economic value; "separation plant" means the plant being constructed by the Company at Meru for the separation of heavy mineral concentrates into component heavy minerals; "State Electricity Commission" means the State Electricity Commission of Western Australia established pursuant to the State Electricity Commission Act 1945; "this Agreement" "hereof" and "hereunder" refer to this Agreement whether in its original form or as from time to time added to varied or amended; "town" means the townsite of Eneabba as amended and redescribed from time to time pursuant to section 10 of the Land Act; "WMC Joint Venturers" means and includes Western Mining Corporation Limited, The Hanna Mining Company and Homestake Mining Company and their permitted assigns being the parties bound by an agreement dated 20th November 1964 entered into with the then Premier on behalf of the State of Western Australia and ratified by the Iron Ore (Tallering Peak) Agreement Act 1964. Interpretation 2 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 31 to extend any period or date shall be without prejudice to the power of the Minister under Clause 31; (c) marginal notes do not affect the interpretation or construction 2; and (d) reference to an Act includes the amendments to that Act for the time being in force and also any Act passed in substitution therefor or in lieu thereof and the regulations for the time being in force thereunder. Initial obligations of the State 2 3. The State shall — (a) introduce and sponsor a Bill in the Parliament of Western Australia to ratify this Agreement and endeavour to secure its passage as an Act prior to 31st December 1975; and (b) to the extent reasonably necessary for the purposes of this Agreement allow the Company to enter upon Crown lands. Ratification and operation 2 4. (1) The provisions of this Agreement other than this Clause and Clauses 1 and 3 shall not come into operation until the Bill referred to in Clause 3 has been passed by the Parliament of Western Australia and comes into operation as an Act. (2) If before 31st December 1975 the said Bill is not passed then unless the parties hereto otherwise agree this Agreement shall then cease and determine and neither of the parties hereto shall have any claim against the other of them with respect to any matter or thing arising out of, done, performed or omitted to be done or performed under this Agreement. (3) On the said Bill commencing to operate as an Act all the provisions of this Agreement shall operate and take effect notwithstanding the provisions of any Act or law. Environment. Company to submit proposals 2 5. On or before 30th September 1975 (or thereafter within such extended time as the Minister may allow as hereinafter provided) the Company shall submit to the Minister 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 measures to be taken in respect of the approved project for the protection and management of the environment including rehabilitation and/or restoration of the mined areas, the prevention of the discharge of tailings, slimes, pollutants or overburden into the surrounding country, water courses, lakes or underground water supplies and the prevention of soil erosion. Consideration of proposals 2 6. (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) require as a condition precedent to the giving of his approval to the said proposals that the Company makes such alteration thereto or complies with such conditions in respect thereto as he thinks reasonable and in such a case the Minister shall disclose his reasons for such conditions. Advice of Minister's decision 2 (2) The Minister shall within 2 months after receipt of the said proposals give notice to the Company of his decision in respect to the same. Consultation with Minister 2 (3) If the decision of the Minister is as mentioned in paragraph (b) of subclause (1) of this Clause the Minister shall afford the Company full opportunity to consult with him should it be so desire to submit new proposals either generally or in respect of some particular matter. Minister's decision subject to arbitration 2 (4) If the decision of the Minister is as mentioned in the said paragraph (b) and the Company considers that the condition precedent is unreasonable the Company may within 2 months after receipt of the notice mentioned in subclause (2) of this Clause elect to refer to arbitration in the manner hereinafter provided the question of the reasonableness of the condition precedent. Arbitration award 2 (5) An award made on an arbitration pursuant to subclause (4) of this Clause shall have force and effect as follows — (a) if by the award the dispute is decided against the Company then unless the Company within 3 months after delivery of the award gives notice to the Minister of its acceptance of the award this Agreement shall on the expiration of that period of 3 months cease and determine; or (b) if by the award the dispute is decided in favour of the Company the decision shall take effect as a notice by the Minister that he is so satisfied with and approves the matter or matters the subject of the arbitration. Additional proposals 2 7. If the Company at any time during the continuance of this Agreement desires to significantly modify expand or otherwise vary its activities beyond those specified in the approved project 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 other matters as the Minister may require. The provisions of Clauses 5 and 6 where applicable shall mutatis mutandis apply to detailed proposals submitted pursuant to this subclause. The Company shall implement the approved proposals in accordance with the terms thereof. Additional proposals for the protection and management of the environment 2 8. (1) The Company shall, in respect of the matters referred to in Clause 5 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 Company shall during the currency of this Agreement at yearly intervals commencing from the date when the Company's proposals are approved submit 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 Company that he requires additional detailed proposals to be submitted in respect of all or any of the matters the subject of the detailed report. (4) The Company shall within 2 months of the receipt of a notice given pursuant to subclause (3) of this Clause submit to the Minister additional detailed proposals as required and the provisions of Clauses 5 and 6 where applicable shall mutatis mutandis apply in respect of such proposals. (5) The Company shall implement the approved proposals in accordance with the terms thereof. Completion of approved project 2 9. The Company shall complete the approved project within 1 year of the commencement date and implement the approved proposals in accordance with the terms thereof. Use of local professional services, labour and materials 2 10. (1) The Company shall for the purposes of this Agreement as far as it is reasonable and economically practicable — (a) use the services of engineers, surveyors, architects and other professional consultants resident and available within the said State; (b) use labour available within the said State; (c) when calling for tenders and letting contracts for works materials plant equipment and supplies ensure that Western Australian suppliers manufacturers and contractors are given reasonable opportunity to tender or quote; and (d) give proper consideration and where possible preference to Western Australian suppliers manufacturers and contractors when letting contracts or placing orders for works materials plant equipment and supplies where price quality delivery and service are equal to or better than that obtainable elsewhere. (2) The Company shall from time to time during the currency of this Agreement when requested by the Minister submit a report concerning its implementation of the provisions of subclause (1) of this Clause. Roads 2 11. (1) The Company shall — Private Roads 2 (a) be responsible for the cost of the construction and maintenance of all private roads which shall be used in its operations hereunder; (b) at its own cost make such provision as shall ensure that all persons and vehicles (other than those engaged upon the Company's operations and its invitees and licensees) are excluded from use of any such private roads; and (c) at any place where such private roads are constructed by the Company so as to cross any railways or public roads provide such reasonable protection as may be required by the Commissioner of Main Roads or the Railways Commission as the case may be. Public Roads 2 (2) The State shall maintain or cause to be maintained public roads over which it has control (and which may be used by the Company) to a standard similar to comparable public roads maintained by the State. (3) In the event that the Company's operations require the use of a public road which is inadequate for the purpose, or result in excessive damage or deterioration of any public road (other than fair wear and tear) the Company shall pay to the State the whole or an equitable part of the total cost of any upgrading required or of making good the damage or deterioration as may be reasonably required by the Commissioner of Main Roads having regard to the use of such road by others PROVIDED THAT nothing in this subclause shall apply to the Eneabba-Geraldton highway. Liability 2 (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 Company is liable to any person or body corporate (other than the State); or (ii) an action is maintainable by any such person or body corporate in respect of the death or injury of any person or damage to any property arising out of the use of any of the roads for the maintenance of which the Company is responsible hereunder and for no other purpose the Company shall be deemed to be a municipality and the said roads shall be deemed to be streets under the care control and management of the Company; and (b) for the purposes of this Clause the terms "municipality" "street" and "care control and management" shall have the meanings which they respectively have in the Local Government Act 1960. Railways Freight to be carried 2 12. (1) The State shall authorise and cause the Railways Commission to transport or arrange to transport and the Company shall so consign — (a) by rail, or by road (at the election of the Railways Commission) all its production of heavy mineral concentrates from a loading point or points to be agreed at or near the concentration plant to an unloading point or points to be agreed at the separation plant; (b) by rail all its production of heavy minerals from a loading point or points to be agreed at the separation plant to the port or elsewhere as the State may agree; and (c) in so far as is practicable, all other bulk commodities required for the Company's operations hereunder. Other commodities 2 (2) The Company may at its election transport either by road or by rail all commodities other than those referred to in subclause (1) of this Clause required for its operations hereunder PROVIDED THAT the Railways Commission shall not be required to accept rail freight in less than full wagon loads. Method of transport 2 (3) Until such time as the Railways Commission operates a rail service between the separation plant and the port the Company may transport its heavy mineral concentrates and heavy minerals, by road between the separation plant and the port. Road licenses 2 (4) Where the Company elects to transport commodities by road pursuant to subclause (2) of this Clause or where the Company desires to transport heavy mineral concentrates and heavy minerals by road between the separation plant and the port pursuant to subclause (3) of this Clause the Commissioner of Transport shall upon request by the Company and upon payment of the licence fees prescribed by him under the Transport Commission Act 1966 issue licences for road carriage to the Company or its nominees provided that such nominees shall be persons whose character qualifications and financial stability are approved by the Commissioner. (5) If the Railways Commission elects to transport or arrange the transport of the Company's heavy mineral concentrates by road from the concentration plant to the separation plant the following provisions shall apply — (a) The Railways Commission shall with suitable covered bulk road vehicles provide a road service between the concentration plant and the separation plant Monday to Saturday inclusive in each week. Should additional services be provided at the request of the Company on Sundays, the Company shall reimburse the Railways Commission for any additional expenses which are payable as a consequence. (b) The Company shall provide and maintain a stockpile of heavy mineral concentrates at the concentration plant of sufficient size to ensure the continuity of the road service. (c) The Company shall be responsible for the loading and unloading of the heavy mineral concentrates and shall provide suitable equipment for this purpose. Rail Additional facilities 2 (6) subject to the provisions of Clause 19 when the Railways Commission commences to transport heavy mineral concentrates by rail from the concentration plant to the separation plant, the Company shall if required by the Railways Commission and in accordance with plans and specifications approved by the Railways Commission at its own cost provide and maintain loading and unloading facilities sufficient to meet train operating requirements and terminal equipment (including weighing devices, communication systems, sidings, shunting loops, spurs and other connections) together with a staff adequate to ensure the proper operation of all such loading and unloading facilities and terminal equipment. Maintenance 2 (7) Subject to the provisions of subclause (6) of this Clause the Railways Commission shall at is own cost provide maintain and service all railways, locomotives, brakevans and wagons necessary and suitable for the purposes of this Agreement provided that the Company may if it so elects provide wagons to a design and specification approved by the Railways Commission and such wagons shall be maintained and serviced by the Railways Commission. The Railways Commission shall be responsible for the cleaning of all wagons used for the purposes of this Agreement. Loading facilities 2 (8) To enable the Railways Commission to transport or arrange the transport of the Company's heavy minerals by rail from the separation plant to the port the Company shall at its own cost provide maintain and operate loading facilities at the separation plant to the satisfaction of the Railways Commission. Notice of requirements 2 (9) The Company 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 make arrangements to meet those requirements and shall thereafter give not less than 18 months prior notice of any change in those requirements. In particular the Company shall agree with the Railways Commission the pattern of working including weekly and monthly despatches. Conditions of carriage 2 (10) All commodities transported by or on behalf of the Railways Commission pursuant to this Clause shall be carried at the Company's risk and shall be subject to the by‑laws made under the Government Railways Act 1904 (in so far as those by‑laws are not inconsistent with this Agreement) and to the provisions of this Clause. Freight rates 2 (11) The Company 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. New railway 2 (12) The State shall for the purposes of this Agreement and as authorised by the Dongara‑Eneabba Railway Act 1974 cause the Railways Commission to construct and operate a railway to the mining areas. The route of the railway south of Eneabba shall be aligned by the Railways Commission after consultation with the Company. Mining 2 (13) The Company shall ensure that mining adjacent to the railway shall be carried out in such manner as not to endanger the railway. The Company shall obtain the prior approval of the Railways Commission before commencing any mining which might be likely to affect the stability of the railway. Railway crossings 2 (14) Notwithstanding the provisions of Clause 11(1)(c) the Company shall be permitted access over the railway only at crossings approved by the Railways Commission. Removal of railway 2 (15) The Railways Commission shall at its cost remove any section of the railway not required by the Railways Commission for serving the mineral sands mining and processing operations of the Company or other companies so engaged. Diversion of railway 2 (16) Should any portion of the railway be within the mineral lease the Company may not earlier than 1st January 1980 request the Railways Commission to divert the railway to allow mining of that portion of the mineral lease. On receipt of such request the Railways Commission shall with reasonable expedition determine an alternative route for the railway satisfactory to the Railways Commission and for this purpose may require the Company to provide land at the Company's expense. The Railways Commission shall subject to the availability of land divert the railway within 12 months of the determination of the alternative route as aforesaid PROVIDED THAT the Railways Commission shall only be required to make one diversion pursuant to this subclause during the currency of this Agreement. Electricity 2 13. (1) The State shall cause the State Electricity Commission to use its best endeavours to complete by not later than 30th June 1978 a 132 kV transmission line to Eneabba and a 33 kV feeder line to a point on or adjacent to the mineral lease with the object of meeting inter alia the Company's requirements of electricity for its operations hereunder. (2) Subject to completion of the said transmission line and feeder line the State Electricity Commission shall supply and the Company shall purchase from the State Electricity Commission all its requirements of electricity for its operations hereunder on the State Electricity Commission's usual conditions and at the tariffs prescribed from time to time appropriate to the Company's level of use. (3) Notwithstanding the terms of subclause (2) of this Clause the Company may in accordance with the approved project and subject to the provisions of the Electricity Act 1945 and the approval and requirements of the State Electricity Commission, install and operate at its cost, at a convenient location within the mineral lease, equipment to generate electricity for all or part of its operations hereunder and continue to operate such equipment in generating all or part of its requirements of electricity after completion of installation by the State Electricity Commission of the transmission line and the feeder line referred to in subclause (1) of this Clause for such period as the parties may agree. Water supply mining areas 2 14. (1) The Company has given the State notice in the form required by the Minister in respect of its daily requirements of water at the mining areas (which amounts or such other amounts as shall from time to time be agreed between the parties hereto to be reasonable shall hereinafter be called "the Company's daily water requirements"). Search in mining areas 2 (2) The Company shall at its cost and in collaboration with the State continue to search for underground water within the mining areas. Where appropriate the Company shall employ and retain experienced groundwater consultants. The Company shall furnish to the Minister details of the results of its investigations and copies of the reports of such consultants as they become available. Search outside mining areas 2 (3) If in the opinion of the Minister, the reports of the consultants pursuant to subclause (2) of this Clause indicate that the source of underground water in the mining areas is likely to be inadequate to supply the Company's daily water requirements, the parties hereto shall agree on a programme which shall be carried out by the State at the cost of the Company to search for water inside and outside the mining areas. The State may at its discretion extend such water search to provide a quantity of water greater than that required to supply the Company'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. Grant of licence 2 (4) If the investigations referred to in subclauses (2) and (3) of this Clause prove to the satisfaction of the Minister the availability of suitable underground water sources which can continue to be drawn on by the Company without seriously affecting the water pressure in the aquife