Jan. 6.] THE NEW ZEALAND GAZETTE. 9

25. All timber when seized shall be marked with the forest brand, ₣, and, after due notice of the seizure thereof in writing, to be posted up in the Land Office or at the police station in the district where such seizure was made, shall, in case no claimant shall appear and establish his claim within fourteen days therefrom, be sold in such manner and subject to such conditions as the Commissioner may direct.

26. All timber cut under a yearly or half-yearly license must be removed within four weeks after the expiration of the license, unless an extension of time be granted by the Commissioner; otherwise it may be declared forfeited, seized, and sold on behalf of the Crown.

27. The proceeds of the sale of timber so seized are to be accounted for and paid to the Receiver of Land Revenue.

28. If, for the purpose of removing timber, any licensee-holder shall have made a tramway or road upon land being waste lands of the Crown, and not being a highway, it shall not be lawful for any other person to use such tramway or road without permission of the person making the same first obtained: Provided that, if such tramway or road shall not be used at any time for ninety consecutive days for removing timber, it shall be lawful for the Land Board to determine that the constructor of the tramway or road has forfeited his right to the same: Provided also that, as regards tramways, the Board reserves to itself the power of deciding on the merits of each case as it arises.

29. All trees shall be felled and removed from the forest in such a way as to cause the least possible amount of injury to the young growth. Should needless damage be caused, it shall be estimated by the Commissioner of Crown Lands, or by some officer to be appointed by him, and the amount of such damage shall be paid by the licensee, together with any special costs that may be incurred. In default of payment of such moneys within fourteen days after demand, the same may be recovered from the licensee as liquidated damages at suit of the Commissioner, or any officer appointed by him in that behalf, and the license held by the licensee may, at the discretion of the said Commissioner, be absolutely forfeited. All trees shall be felled inwards.

SAWMILL LICENSES.

30. Generally the area of a sawmill license shall not exceed 200 acres, but the holder may apply to have three additional areas adjoining the first reserved for his exclusive use for a period not exceeding one year for each 100 acres from the date of appropriation; provided that he shall not be allowed to fell timber on any portion until he has complied with the terms of payment. When the purchased area comprises inferior or partially-cut bush, and the reserve applied for contains superior or virgin bush, the Commissioner of Crown Lands shall have power to withhold the reserve in whole or in part as he shall think fit. The title of the reserve shall be absolutely dependent upon the licensee’s title to the sawmill area with which it is connected, and shall accordingly lapse whenever the sawmill area has been forfeited for breach of conditions.

31. The area of a license to cut and saw kauri or other large timber may include the whole or part of one side of a watershed within specified limits, and the Commissioner may dispose of such kauri or other timber growing within such limits, to be sawn at a mill erected within or adjacent to the said area, or to be removed for manufacture elsewhere.

32. It shall be optional with the Land Board to decide whether a royalty shall be paid in cash or partly in cash and the balance by instalments spread over such period as the Board may think expedient, and the said royalty may be assessed either on the estimated number of superficial feet of milling timber in the forest, or on the actual output of the mill, such output to be ascertained and verified by inspection of the books of the mill, or by such other means as the Board may devise, and for this purpose the accounts and books shall be open to the inspection of a Ranger or other duly-authorised Government officer.

33. Royalty on timber shall be paid at the rates specified in the classified scale in the Second Schedule; but where the timber is easily accessible and can be procured without great difficulty, the Commissioner of Crown Lands may increase the amount of the royalty specified.

34. A sawmill license may be transferred on payment of a fee of £1 1s. to the Receiver of Land Revenue; but the Commissioner of Crown Lands shall have power to refuse to transfer any license if the licensee or transferee has committed a breach of these regulations, or if, in the opinion of the Commissioner of Crown Lands, the transfer would be prejudicial to the public interest.

35. The holder of every sawmill license, other than for kauri, must, within twelve months of the date of his license, provide and fit up, either upon his sawmill area or on some other site approved of or granted by the Commissioner of Crown Lands, a substantial and fully-equipped sawmill plant, including all the necessary buildings thereto appertaining, which sawmill plant must be kept in continuous working operation, unless valid and satisfactory reasons can be given to the Commissioner of Crown Lands for any temporary stoppage. Should at any time the mill be closed for a longer time than the Commissioner of Crown Lands thinks necessary or reasonable, it will be competent for him to give the licensee one month’s notice in writing, and, should the licensee fail or neglect to resume and continue the bona fide working of the mill, the Commissioner of Crown Lands shall declare the license forfeited, and may immediately reoffer for license the sawmill area and the attached reserve as if the rights of the previous licensee had never existed. The licensee may within three months from the date of forfeiture, however, remove any building or machinery he may have erected. Whenever a sawmill licensee applies for another sawmill area alongside the area previously held by him, such last-mentioned area will be deemed to be worked out, and the land and remaining timber, if any, will immediately and absolutely revert to the Government.

36. The license, for the purpose of fulfilling conditions, is to date from the time the applicant is notified of completion of survey and amount of royalty payable.

37. The Commissioner may, at his discretion, accept promissory notes bearing good indorsements as part payment of royalty.

38. The applicant for a sawmill area shall state before survey is made what timber he proposes to use, and he will be charged with such timber only; other timber not included in the application shall not be cut or used excepting for tramways or buildings.

39. No black-, red-, or white-pine, totara, miro, or other milling timber of less than 12 in. at the butt will be included in the valuation, and the cutting of any timber under the size specified, unless specially authorised, will be deemed to be unlawfully cut: Provided, however, that smaller timber for laying tramways, building sheds, or other such purposes connected with his industry, may be cut and used in quantity to be approved by the Crown Lands Ranger or Commissioner of Crown Lands.

40. Every license (terminable within any year) shall be drawn so as to terminate on the 31st December in each year, and may be renewed from year to year, but subject to such alterations in the regulations as may be found necessary for the better management and utilisation of the bush: Provided that before the issue of any renewed license the licensee shall produce a certificate from the Crown Lands Ranger or other person duly appointed by the Land Board on that behalf—

(1.) That the timber has been cut in a continuous and regular manner;

(2.) That the sawmill has been kept continuously in operation, when not stopped by causes considered unavoidable by the Board;

(3.) That, where so provided against, no trees or saplings under 12 in. in diameter have been cut for sale, or destroyed by the act of or by the neglect of the licensee or his servants, and that none of the provisions of the regulations have been violated.

41. And if it shall appear that such regulations have not been complied with, or that any wrongful acts have been done by the licensee, then the Land Board shall appoint a valuator to ascertain and assess the amount of damage which the forest, whether under license or not, may have sustained by such wrongful acts; and no new license shall be granted until the amount of damage so assessed shall have been paid, in addition to the sum due by way of rent and expenses of valuation.

42. If at any time during the currency of the yearly license the Ranger shall report that the timber on the licensed ground is being improperly cut, the license may be suspended pending investigation, and cancelled if it is found that the regulations have been infringed.

43. Special licenses for single trees or clumps of trees may be granted at the discretion of the Commissioner of Crown Lands, on payment of such fees as may be fixed by him.

44. It shall be a condition precedent to the sale of any quantity of timber other than a single tree that a Crown Lands Ranger shall first report on the estimated quantity, quality, and general position and value of such timber; and thereupon the Land Board of the district may order the sale or grant licenses in manner above described.

45. Timber sold by auction shall be subject to such terms of payment as may be fixed by the Commissioner in each case. If any balance of purchase-money remains unpaid for the space of seven days after the time limited for payment thereof, the Land Board may declare the contract of sale, and all rights and privileges of the purchaser thereunder, to be at an end, and thereupon any moneys paid in respect of such contract shall be absolutely forfeited to Her Majesty.

46. Before any license is issued to any purchaser of timber bought at auction, all timber so sold shall be branded by a