Poseidon Nickel Agreement Act 1971 (WA)

Western Australia Poseidon Nickel Agreement Act 1971 Western Australia Poseidon Nickel Agreement Act 1971 Contents 1. Short title 1 2. Terms used in this Act 1 3. Agreement ratified 2 3A. Variation agreement approved and ratified 2 3B. Termination agreement ratified 2 4. Entry on certain Crown lands by Company 2 Schedule 1 — Poseidon Nickel Agreement Schedule 2 — Variation agreement Schedule 3 — Termination agreement Notes Compilation table 66 Other notes 66 Defined terms Western Australia Poseidon Nickel Agreement Act 1971 An Act to ratify an agreement between the State and Poseidon Limited relating to the mining of nickel ore at Mount Windarra and matters incidental thereto and to ratify a further agreement for the termination of that agreement. [Long title amended: No. 3 of 2022 s. 4.] 1. Short title This Act may be cited as the Poseidon Nickel Agreement Act 1971. 2. Terms used in this Act In this Act — the Agreement means the agreement of which a copy is set forth in the Schedule 1 to this Act, and if the Agreement is added to or varied or any of its provisions are cancelled, in accordance with the provisions of clause 37 thereof, includes the Agreement as so altered from time to time; the Company has the same meaning as it has in, and for the purposes of, the Agreement; the termination agreement means the agreement a copy of which is set out in Schedule 3 to this Act; the variation agreement means the agreement a copy of which is set out in Schedule 2 to this Act. [Section 2 amended: No. 17 of 1985 s. 3; No. 3 of 2022 s. 5.] 3. Agreement ratified The Agreement is ratified, and subject to its provisions shall operate and take effect. 3A. Variation agreement approved and ratified (1) The variation agreement is approved and ratified and the implementation of the variation agreement 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 3A inserted: No. 17 of 1985 s. 4.] 3B. Termination agreement ratified (1) The termination agreement is ratified. (2) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the termination agreement shall operate and take effect notwithstanding any other Act or law. [Section 3A inserted: No. 3 of 2022 s. 6.] 4. Entry on certain Crown lands by Company Notwithstanding any other Act or law, the Company may enter upon the Crown lands referred to in paragraph (b) of clause 3 of the Agreement in accordance with, and for the purposes mentioned in, that paragraph. [Heading deleted: No. 19 of 2010 s. 42(2).] Schedule 1 — Poseidon Nickel Agreement [s. 2] [Heading amended: No. 17 of 1985 s. 5; No. 19 of 2010 s. 4.] THIS AGREEMENT made this 27th day of July One thousand nine hundred and seventy-one BETWEEN THE HONOURABLE JOHN TREZISE TONKIN, 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 POSEIDON LIMITED a company incorporated under the Companies Act of the State of South Australia and registered in the State of Western Australia as a foreign company (hereinafter called "the Company" in which term shall be included the Company and its successors and assigns) of the other part. WHEREAS (a) the Company has established the existence of nickel ore within the mining areas defined in Clause 1 and has carried out certain investigations relating inter alia to the mining and treatment of that ore and the sale of nickel containing products; (b) the Company now intends to commence mining ore at Mount Windarra and transporting that ore by road and rail to Fimiston for concentration and sale and where appropriate for subsequent transport to Esperance for shipment; (c) the Company intends to provide facilities and services necessary for its operations hereunder and for the accommodation, health, education and welfare of its employees; (d) the Company intends to further develop its nickel deposits with a view to concentrating ore at or near Mount Windarra and if practicable to increase progressively the scale and scope of its operations; and (e) the State requires the Company, subject to economic feasibility, to pursue actively and progressively a policy of increasing the upgrading of ore leading ultimately to the production in Western Australia of nickel metal from that ore. NOW THIS AGREEMENT WITNESSETH — 1. In this Agreement subject to the context — "apply", "approve", "approval", "consent", "certify", "direct", "notify", "request" or "require" means apply approve approval consent certify direct notify request or require in writing as the case may be; "associated company" means — (a) any company providing for the purposes of this Agreement capital of not less than two million dollars ($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 acceptable to the Minister has not less than a twenty-five per cent (25%) interest or some lesser interest acceptable to the Minister; or (ii) being a corporation is related within the meaning of that term as used in section 6 of the Companies Act 1961, to any company in which the Company or some other company acceptable to the Minister holds not less than twenty-five per cent (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 approved in writing by the Minister; "associated works" means and includes mine development the installation of mining plant mining equipment and plant for the treatment of nickel ore or any derivative of nickel ore, works for the provision of electricity, and the construction of housing and communal facilities for the proper and reasonable accommodation health and recreation of workers employed by the Company and of contractors engaged in carrying out the Company's operations under this Agreement; "Clause" means a clause of this Agreement; "commencement date" means the date the Bill referred to in subclause (1) of Clause 2 comes into operation as an Act; "Commonwealth" means the Commonwealth of Australia and includes the Government for the time being thereof; "Land Act" means the Land Act 1933; "matte" means a smelter product containing principally nickel with other elements in varying proportions; "mineral leases" means the mineral lease or mineral leases referred to in Clause 12 and any renewals thereof; "Mining Act" means the Mining Act 1904; "mining areas" means the areas delineated and coloured red on the plan marked "A" initialled by or on behalf of the parties hereto for the purposes of identification together with such of the areas delineated and coloured yellow on the said plan over which mineral claims may at any future time 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; "nickel concentrates" means concentrates obtained by treating nickel ore; "nickel-containing products" means nickel concentrates matte nickel metal and any other nickel-containing product; "nickel metal" means the metallic product obtained by refining nickel concentrates or matte; "notice" means notice in writing; "ore" means nickel ore; "person" or "persons" includes bodies corporate; "private road" means a road (not being a public road) which is either constructed by the Company in accordance with its proposals as approved by the Minister pursuant to Clause 5 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 2; "smelter" means a smelter plant or any other plant in which matte or nickel-containing products (other than nickel concentrates) are produced from ore or nickel concentrates; "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" 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 Company with the approval of the State; "townsite" means the site on which the town is to be situated delineated and coloured green on the plan marked "A" referred to in the definition of "mining areas" in this clause subject to such alterations of the area or boundaries thereof as may be contained in the Company's proposals as approved by the Minister under Clause 5. Marginal notes shall not affect the interpretation or construction hereof 1. Monetary references in this Agreement are to Australian currency. Power given under any clause of this Agreement other than Clause 39 to extend any period or date shall be without prejudice to the power of the Minister under the said Clause 39. Reference in this Agreement to an Act shall include the amendments to such 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. Ratification and operation 1 2. (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 the 31st day of December, 1971 the said Bill is not passed this Agreement will then cease and determine and neither of the parties hereto 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. (3) On the said Bill commencing to operate as an Act all provisions of this Agreement shall operate and take effect notwithstanding the provisions of any Act or law. Initial obligations of the State 1 3. The State shall — (a) introduce and sponsor a Bill in the Parliament of Western Australia to ratify this Agreement and endeavour to secure its passage as an Act prior to the 31st day of December, 1971; and (b) to the extent reasonably necessary for the purposes of this Agreement allow the Company to enter upon Crown lands (including, if applicable, land the subject of a pastoral lease). Company to submit Proposals 1 4. (1) On or before the 31st day of December, 1971 (or thereafter within such extended time as the Minister may allow as hereinafter provided) the Company shall submit to the Minister — (a) to the fullest extent reasonably practicable its detailed proposals (which proposals shall include plans where practicable and specifications where reasonably required by the Minister and measures to be taken for the protection of the environment) for stage one comprising a mining and treatment project with a capacity to produce not less than seven hundred thousand (700,000) tons per year of ore from so much of the mining areas as shall be comprised in the mineral leases and the transport and shipment through a port within the State of Western Australia of nickel-containing products and for making provision for the necessary work force and associated population required to enable the Company to mine ore in the mining areas and to process it at the ore treatment plant of Lake View and Star Ltd. at Fimiston or the Company's plant at Mount Windarra or at such other site or sites as the parties hereto may agree, 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 — (i) the mining, crushing, milling and concentrating of ore from the mining areas; (ii) roads; (iii) railways including the upgrading of existing railways and the provision of rolling stock; (iv) facilities for the export of nickel-containing products through a port in the State of Western Australia; (v) water supply; (vi) town, including housing, provision of utilities and services and associated facilities; (vii) power generation and distribution; (viii) any other works, services or facilities desired by the Company; (ix) any leases, licences or other tenures of land required from the State; Marketing and finance 1 (b) subject to the provisions of subclause (3) of this Clause reasonable evidence of marketing arrangements demonstrating the Company's ability to sell or use ore or nickel-containing products or a substantial proportion thereof and reasonable evidence of the availability of finance necessary for the fulfilment of the Company's proposals under this Clause. Order of submission of Proposals 1 (2) The Company shall have the right to submit to the Minister its detailed proposals aforesaid in regard to the matter or matters the subject of any of the subparagraphs numbered (i) to (ix) inclusive of paragraph (a) of subclause (1) of this Clause as and when the detailed proposals become finalised by the Company PROVIDED THAT where any such matter is the subject of a subparagraph which refers to more than one subject matter the detailed proposals shall relate to and cover each of the matters mentioned in the subparagraph. Extension of time for financing and marketing 1 (3) (a) If the Company for any reason desires an extension of time beyond the said 31st day of December, 1971 within which to comply with the requirements of paragraph (b) of subclause (1) of this Clause it may make a written request therefor to the Minister not earlier than the 1st day of October, 1971 or later than the 30th day of November, 1971 and with such request shall supply the Minister with details of its endeavours to comply with those requirements then if the Minister is satisfied that such endeavours are reasonable in the circumstances and that the Company has otherwise duly complied with its obligations hereunder the Minister shall grant an extension of such time for a period of six (6) months. (b) If after having been granted an extension of time pursuant to a request made under the last preceding paragraph the Company desires any further extensions of time it shall in each case make a written request therefor to the Minister and with such request supply the Minister with details of its further endeavours to comply with the requirements of paragraph (b) of subclause (1) of this Clause then if the Minister is satisfied that such further endeavours are reasonable in the circumstances and that the Company has otherwise duly complied with its obligations hereunder the Minister shall grant the Company one or more further extensions of time for such period or periods as he may consider the circumstances warrant but such extension shall not be to a date later than the 31st day of December, 1973. Consideration of proposals under Clause 4(1) 1 5. (1) Within two (2) months after receipt of the detailed proposals of the Company in regard to any of the matters mentioned in paragraph (a) of subclause (1) of Clause 4 the Minister shall give to the Company notice either of his approval of the proposals or of alterations desired thereto and in the latter case shall afford to the Company opportunity to consult with and to submit new proposals to the Minister. The Minister may make such reasonable alterations to or impose such reasonable conditions on the proposals or new proposals (as the case may be) as he shall think fit having regard to the circumstances including the overall development and use by others as well as the Company of any natural resource or public utility but the Minister shall in any notice to the Company disclose his reasons for any such alterations or conditions PROVIDED THAT the Minister shall not (except on the grounds of conflict with the Mines Regulation Act 1946) make any alterations to or impose conditions upon the proposals or new proposals insofar as they relate to the site of the mining operations or the mining methods selected by the Company or to those aspects of the Company's plant for the treatment of ore which do not in the Minister's opinion adversely affect the environment or public safety or the economic use of water resources. Arbitration as to Proposals 1 (2) Within two (2) months of the receipt of any notice under subclause (1) of Clause 5 the Company may elect by notice to the State to refer to arbitration and within two (2) months thereafter shall refer to arbitration as hereinafter provided any dispute as to the reasonableness of any such alteration or condition. If by the award on arbitration the dispute is decided against the Company then unless the Company within three (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 three (3) months cease and determine (save as provided in Clause 32) but if the question is decided in favour of the Company the decision shall take effect as a notice by the Minister that he is so satisfied with and approves the matter or matters the subject of the arbitration. Effect of non-approval of Proposals 1 (3) Notwithstanding that under subclause (1) of this Clause any detailed proposals of the Company are approved by the Minister or determined by arbitration award unless each and every such proposal and matter is so approved or determined by the 29th day of February, 1972 or by such extended date if any as the Company shall be entitled to or shall be granted pursuant to the provisions hereof then at any time after the said 29th day of February, 1972, or if any extension or extensions should be granted under subclause (3) of Clause 4 or any other provision of this Agreement then on or after the expiration of the last of such extensions the Minister may give to the Company twelve (12) months notice of intention to determine this Agreement and unless before the expiration of the said twelve (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 32. Further Proposals 1 6. Notwithstanding the final approval pursuant to Clause 5 of the Company's stage one proposals (referred to in paragraph (a) of subclause (1) of Clause 4) the Company may from time to time thereafter submit further or additional proposals for the purposes of this Agreement in which case the provisions of Clauses 4 and 5 so far as applicable shall apply thereto mutatis mutandis. Construction of works 1 7. The Company shall in accordance with its proposals as finally approved under Clause 5 within six (6) months next following the date of such approval commence the construction of the works referred to in such proposals and will complete all such works by the 31st day of December, 1972 except as otherwise specified in such proposals. Roads 1 8. (1) The Company shall — (a) be responsible for the cost of the construction and maintenance of all private roads which shall be used in its operations hereunder; (b) at its own cost make such provision as shall ensure that all persons and vehicles (other than those engaged upon the Company's operations and its invitees and licensees) are excluded from use of any such private roads; and (c) at any place where such private roads are constructed by the Company so as to cross any public roads provide grade separation or such other protection as may be required by the Commissioner of Main Roads or Railways Commission as the case may be. (2) The State shall construct or cause to be constructed a public road suitable for the Company's operations hereunder in accordance with the requirements of the Commissioner of Main Roads connecting by the shortest practicable route the Kalgoorlie-Wiluna Road to Malcolm and thence to the townsite and extending to a point within the mining areas to be agreed between the parties. Such road shall be sealed to a width of not less than twenty (20) feet or such greater width as may be agreed. The State shall use its best endeavours to complete the section of the road between Malcolm and the agreed point within the mining areas within twelve (12) months of the approval under Clause 5 of the Company's proposals relevant to the said road and the remaining section within the next succeeding twelve (12) months. (3) The Company shall pay to the State at the times and in the manner required by the State one half of the cost of the construction and sealing of the public road referred to under subclause (2) of this Clause. (4) The State shall at its own expense construct such further public roads as shall be necessary to connect the townsite with Laverton. (5) Subject to the provisions of paragraph (c) of Clause 14 the State shall maintain 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. (6) 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 or Local Authority concerned (except where and to the extent that the Commissioner of Main Roads or Local Authority agrees to bear the whole or part of the cost involved) the total cost of any upgrading required or of making good the damage or deterioration. Railways 1 9. (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 Company shall consign at its own risk, and the State shall cause the Railways Commission to transport, by rail, all the Company's requirements of — Products to be transported by rail 1 (a) ore and nickel-containing products from the railhead at Malcolm to the plant site of Lake View and Star Limited at Fimiston or to any other processing plant in the vicinity of Kalgoorlie approved by the Minister; and (b) nickel-containing products from Fimiston or Malcolm to Esperance or such other port as may be approved hereunder. Reconstruction 1 (2) The Company shall from time to time as required by the Railways Commission pay to the State a sum or sums to be agreed between the parties towards the cost of upgrading or reconstructing the existing railway line between Malcolm and Kalgoorlie in narrow gauge (3 feet 6 inches) in accordance with proposals from time to time approved under Clause 5 (including the cost of providing inter alia any deviations, loops, spurs, sidings, crossings, points, bridges, and other works and appurtenances) to achieve a capacity to enable the Railways Commission to transport ore or nickel concentrates at a rate not exceeding seven hundred thousand (700,000) tons per annum and all other rail freight required by the Company for its operations hereunder for a period of five (5) years from the date on which rail haulage of the Company's ore or nickel concentrates commences. Notice of further requirements 1 (3) Not later than eighteen (18) months after the date of commencement of haulage of ore referred to in subclause (2) of this Clause the Company shall give notice to the State of its estimated future rail transport requirements hereunder (including provisional annual tonnages) of ore and nickel-containing products. Preparation of specifications 1 (4) On receipt of the notice referred to in subclause (3) of this Clause the State shall cause the Railways Commission in consultation with the Company to prepare a specification (including all necessary plans and bills of quantities) of the works required to further upgrade or reconstruct the existing Malcolm to Kalgoorlie railway line in narrow gauge (3 feet 6 inches) to enable the Railways Commission to transport the Company's rail freight to the extent specified and in accordance with the said notice. Calling of tenders 1 (5) As soon as practicable after completion of the specification mentioned in subclause (4) of this Clause the State shall cause the Railways Commission to call tenders in accordance with the said specifications. The amount of each tender received by the Railways Commission pursuant to this subclause shall be notified to the Company. Company's Contribution 1 (6) The Company shall pay to the State a sum or sums to be agreed between the parties as being the Company's fair share of the cost of the works referred to in subclause (4) of this Clause having regard to the proposed use of the works by the Company. (7) In the event that the State requires all or any part of the works referred to in either or both of subclauses (2) and (4) of this Clause to be completed in standard gauge (4 feet 8½ inches) the State may in its discretion so proceed in which case the Company's contribution will be a sum to be determined by the Railways Commission not exceeding the amount which would have been payable by the Company if the works had been completed in narrow gauge (3 feet 6 inches). New Railway 1 (8) The Company shall — (a) pay to the State a sum or sums to be agreed between the parties towards the cost of providing any new railway required for the purpose of the operations of the Company hereunder (including all necessary land acquisitions, loops, spurs, sidings, crossings, points, bridges and other works and appurtenances) to enable the Railways Commission to transport the Company's rail freight in the course of its operations hereunder; Other facilities 1 (b) at its own cost provide and maintain such sidings, shunting loops, spurs and other connections as are required solely for its operations hereunder and provide and maintain loading and unloading facilities sufficient to meet train operating requirements and terminal equipment (including weighing device), together with a staff adequate to ensure the proper operation of all such loading and unloading facilities and terminal equipment; Kalgoorlie-Fimiston Railway 1 (c) if required by the State contribute to the cost of reconstructing the railway between Kalgoorlie and an agreed terminal point on the plant site of Lake View and Star Limited at Fimiston or at any other processing plant in the vicinity of Kalgoorlie approved by the Minister. Rolling Stock 1 (9) The Company shall — Wagons 1 (a) If required by the Railways Commission provide sufficient wagons (including spare wagons) and necessary replacements except replacements made necessary by the wilful misconduct of the Railways Commission (to a design and specification approved by the Railways Commission) to carry all the Company's requirements of ore and nickel concentrates in the course of its operations hereunder; and Locomotives and brakevans 1 (b) if required by the Railways Commission provide sufficient locomotives and brakevans (to a design and specification approved by the Railways Commission) for the transport of all rail freight offering in the course of its operations hereunder and lease such locomotives and brakevans to the Railways Commission on such terms and conditions as may be agreed by the parties. Maintenance 1 (10) Subject to the provisions of paragraph (b) of subclause (8) of this Clause the State shall at its own expense maintain and service all railways, locomotives, brakevans and wagons necessary for the purposes of this Agreement. Notice of requirements 1 (11) In addition to the provisions of subclause (3) of this Clause the Company shall provide to the satisfaction of the Railways Commission adequate notice in advance of its requirements (including anticipated tonnages 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 adequate 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 and the hours of working. Trimming 1 (12) The Company shall ensure that all wagons are properly trimmed and loaded to the tonnages prescribed in the First Schedule hereto. Freight 1 (13) 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 set out in that schedule. Electricity 1 10. (1) The Company shall in accordance with its proposals as finally approved and subject to the provisions of the Electricity Act and the approval and requirements of the State Electricity Commission, install and operate without cost to the State, at a convenient location within the mining areas, equipment to generate electricity of sufficient capacity for its operations hereunder. (2) The Company may transmit power from the mining areas to the townsite or elsewhere subject to the provisions of the Electricity Act and the approval and requirements of the State Electricity Commission. (3) The Company may subject to the provisions of the Electricity Act and the requirements of the State Electricity Commission sell power transmitted pursuant to subclause (2) of this Clause to third parties within the townsite or elsewhere. (4) In the event that the Company is unable to procure easements or other rights over land required for the purposes of this Clause on reasonable terms the State shall assist the Company to such extent as may be reasonably necessary to enable it to procure the said easements or other rights over land. (5) In the event that the State Electricity Commission desires to assume responsibility for the distribution of power within the townsite, the Company shall sell all of its electrical distribution plant and distribution facilities to the State Electricity Commission at a price to be agreed and shall make available to the State Electricity Commission a continuous supply of electricity in bulk at a tariff and for a term to be agreed. If the Company and the State Electricity Commission fail to reach agreement under this subclause the matter in dispute shall be referred to arbitration in accordance with the provisions of Clause 40. (6) In the event that a local authority with the approval of the State Electricity Commission desires to assume responsibility for the distribution of power within the townsite, the Company may sell all of its electrical distribution plant and distribution facilities to that local authority and make available to it a continuous supply of electricity in bulk on terms to be agreed between the Company and that local authority. Water Supply 1 11. (1) The Company estimates (on the basis that its ore is to be concentrated at the treatment plant of Lake View and Star Limited at Fimiston) that its daily requirements of water at the townsite and at Mount Windarra to implement its stage one proposals (referred to in paragraph (a) of subclause (1) of Clause 4 as finally approved under Clause 5 will be as follows — Potable water — not less than seven hundred and forty thousand (740,000) gallons; Non-potable water — nil. The above amount 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". (2) The Company shall at its cost and in collaboration with the State search for underground water within the mining areas. Where appropriate the Company shall employ and retain experienced groundwater consultants and shall furnish copies of the reports of such consultants to the Minister as they become available. (3) If the water sources within the mining areas prove inadequate to supply the Company's daily water requirements the