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after the expiration of twelve months from the date at which it has been or may be granted, it may be deemed to be forfeited, and the registration thereof may be cancelled.

31. Use of water may be sold.

It shall be lawful for the holder or holders of a water right under "The Gold Fields Act, 1866," or "The Gold Fields Act Amendment Act, 1865," empowering such holder or holders to divert water, and to cut, construct, and use water races, dams, and reservoirs, to sell and dispose of the right to, and the use of the whole or any portion of such water.

32. Tail water.

All right or control over the water shall cease upon leaving the sluice-box of any holder of a water right, except in cases where the length of the head race is one mile or upwards along the course of the race, when the right of control shall remain with the holder of the water right until the water shall enter the natural course of any stream.

33. Registration fee.

The Registration Fee for head races shall be five shillings, and the Fee for transfer shall be two shillings and sixpence.

34. Water to be gauged when demanded.

It shall be imperative on all race and water right holders who obtain their supply of water from a creek or river to place a gauge in their respective races, as prescribed in section IV., Clause 11, within seven clear days after receiving a written notice from any person entitled to receive a supply of water from the same creek or river, in the form set forth in Schedule B, and shall continue to run the water through such gauge, if required.

V.—Dams and Puddling Machines.

1. Notice of construction to be given.

Any person intending to form a dam or erect a puddling machine, shall give notice thereof in writing to the Warden, and to the four parties working or occupying claims nearest to the proposed site, who shall sign such notice, expressing their assent thereto, or dissent therefrom; such notice shall be in the form prescribed in Schedules C and D and copies thereof shall be posted and maintained by the applicant for seven clear days upon the proposed site of such dam or machine; and at the expiration of the said term of seven clear days the Warden shall inquire into any objections or cause of dissent, and thereafter issue or withhold a Certificate of Registration (in the case of dams, reservoirs, and watersheds, showing size of dam or reservoir and extent of watershed), according to the equities of the case.

2. Main sludge channel to be first constructed.

No person shall be permitted to erect a puddling machine in any locality wherein puddling operations have not heretofore been carried on, until a main sludge channel shall have first been constructed, and every such person shall be entitled to occupy, for the purpose of depositing matter taken out of such sludge channel, a space along the whole length of such sludge channel not exceeding ten feet on either side.

3. Main sludge channels to be approved by the Warden.

The position and course of all main sludge channels, and the width and depth thereof, shall be subject to the approval of the Warden, who shall have power to remove, alter, and vary the same whenever it shall seem to him necessary so to do; and upon the approval of any such main channel, the Warden shall grant a certificate of the same to the applicant. And when any such channel shall be ordered by the Warden to be removed, altered, or varied at the instance of any person, the expense of such removal, alteration, or variation shall be borne by the person at whose instance such removal, alteration, or variation was made.

4. Expense of construction.

The expense of the construction of such channel shall be borne by the persons then or afterwards using the same in proportion to the position of each machine relatively to the said channel, and payment of such proportion to the person constructing the same shall be made prior to the granting of any certificate of registration.

5. Sludge drains and channels to be kept clean.

Main sludge channels shall be kept clean and in good repair by the joint labour of the machine owners in each locality, and the owner of each machine shall further keep clear and in good order the private sludge drains connected with such machine, and on no pretence whatever shall the sludge from any main channel or private drain be permitted to overflow the banks or edges thereof.

6. Roads and drains to be bridged.

When sludge or water drains run across or under any road in general use, a substantial bridge (the culvert of which shall be of sufficient size to carry off the sludge or water) shall be constructed, and kept in repair by the owner of the machine, whence such sludge or water proceeds.

7. Forfeiture of dams or machines.

The site of any dam or machine not commenced within seven days from the date of the grant thereof, or not completed within a reasonable time, or any dam or machine unoccupied for one calendar month during a period when sufficient water has been available, shall be deemed to be forfeited, and may be granted by the Warden to any person who may apply for the same.