652
THE NEW ZEALAND GAZETTE.
[No. 18

10. Such petition shall be as nearly as possible similar to the form given in Schedule No. 3 hereto.
11. The Governor may, if satisfied that the rent, terms, and conditions set forth in the said petition are fair and reasonable and do not conflict with these regulations, execute a lease, to be prepared by the owner leasing the land, and at his expense, embodying the approved conditions set forth in such petition and in these regulations.
12. Such lease shall be issued under the provisions of section eleven of the said Act, and shall be as nearly as possible to the same effect and contain the same provisions as are set forth in Schedule No. 2 hereto.
13. The lessee shall not be required to make any declaration as to the area or value of land held by him, unless the Commissioner shall specially require the same.
14. If more than one owner desires to lease his allotment to the same person or company, such owners may jointly sign the above petition, and the Governor may execute one lease over all such allotments.
15. When two or more owners group their allotments together and lease them to the same person or company, as provided above, all rent and purchase-money, or royalty payable on account of the timber cut and removed from the lands so leased, shall be divided amongst such owners in the same proportion that the area of their individual allotment bears to the total area so leased, irrespective of the ownership of the particular allotment from which such timber may have been cut or removed, or which may be used for grazing or other purposes by the lessee.

Conditions of Lease.

16. There shall be annually deducted from the rentals and royalty received on account of allotments disposed of hereunder a sum not exceeding five per centum thereof, as the charge for administration and other expenses, such sum being in addition to the preliminary expenses incurred in offering the allotments for lease and disposing of them. The sum so deducted shall be determined by the Commissioner, whose decision shall be final, and shall be deducted from such payments of rent as he shall determine, and paid into the Public Account.
17. The net amount of rentals derived from any allotment leased under these regulations shall, after deducting the amounts authorised herein, be paid by the Receiver of Land Revenue to the owners of such allotments at such times as he shall find most convenient after receipt thereof, but such payments shall not be made at greater intervals than once in every twelve months.
18. Every lessee of an allotment leased under these regulations shall pay the rent thereof half-yearly in advance on the first days of January and July respectively, and shall from time to time pay and discharge all rates, taxes, and assessments whatsoever now or hereafter to become payable upon or in respect of the land leased to him, or any part thereof.
19. With the first half-yearly payment rent shall also be paid for the period elapsing between the date of the lease and the due date of such half-yearly payment.
20. All rent payable under the lease shall be paid to the Receiver, whose receipt shall be a good discharge to the lessee.
21. Should any rent not be paid within thirty days of its becoming due, the Commissioner may sue the lessee for payment thereof without giving him any previous notice of his intention to do so.
22. Should any lessee not pay the rent agreed upon within the space of forty-five days after it shall have become due, or if he makes default in the faithful performance or observance of any other covenant or condition on his part contained or implied in his lease, then and in any such case the Commissioner or officer authorised by him may re-enter upon the demised land and thereby determine the lease, and that without releasing the lessee from any liability in respect of any rent due or of any preceding breach of covenant.
23. No lessee shall be permitted to transfer, either by way of sale, mortgage, or underlease, the possession of or interest in the land leased by him, or any part thereof, without the previous consent in writing of the Commissioner.
24. Each lessee shall be required to effect substantial improvements of a permanent character on the land leased by him, as under:—
    (a.) Within one year from the date of his lease, to an amount equal to two years’ rental;
    (b.) Within three years from the date of his lease, to a further similar amount;
    (c.) Within five years from the date of his lease, to an additional similar amount.
    All such improvements shall be the property of the lessee, and they shall be duly valued and dealt with under the provisions of sections 72 to 77 of “The Land Act, 1908,” at the termination of the lease.
25. The Commissioner shall have power to extend the time for effecting improvements under these regulations, or to pay the rent prescribed in the lease, or to comply with any other covenant or condition contained or implied in the lease, for any period as he shall think fit, upon good and sufficient reasons being given therefor.
26. The lease of any allotment leased under these regulations shall be for any period not exceeding twenty-one years, as may be mutually agreed upon between the owner of the allotment and the Commissioner, and the date of such lease shall be the day on which the Commissioner approves an application therefor.
27. Each lease shall be in triplicate, one copy thereof being registered in the office of the District Land Registrar for the district in which the land is situated, one copy being retained by the Commissioner, and one copy being retained by the lessee. It shall be in the form given in the Schedule No. 2, or as nearly thereto as may be practicable.

Disposal of Timber.

28. When one person or company leases more than one allotment under these regulations, the timber thereon, if estimated to be more than 100,000 sup. ft., shall be cut in the manner following, that is to say:—
    (a.) If the total estimated quantity of millable timber of such allotments is less than five hundred thousand superficial feet, within eighteen months from the date of disposal:
    (b.) If the total estimated quantity of millable timber exceeds five hundred thousand superficial feet, but is less than one million superficial feet, then within three years from such date:
    (c.) If the total estimated quantity of millable timber exceeds one million superficial feet, but is less than one million five hundred thousand superficial feet, then within four years from such date:
    (d.) For every five hundred thousand superficial feet in excess of one million superficial feet, an additional period of one year shall be allowed up to a maximum period of ten years.
29. The owner of each allotment shall bear all the expenses of having the timber thereon estimated and inspected under these regulations, unless the lessee agrees in writing to bear such expenses.
30. Payment for any timber standing on any allotment leased under these regulations shall be made in the manner following:—
31. A deposit of five per centum of the preliminary estimated value of the timber upon any allotment so leased shall be paid in cash by the lessee prior to the execution of the lease by the Governor, and the balance of purchase-money shall be paid by the lessee to the Receiver as follows:—
32. A royalty as set forth in Schedule No. 4 shall be payable for all timber cut, removed, or used from or on any allotment so leased, subject to the following covenants, conditions, and restrictions, that is to say:—
    (a.) The lessee shall commence active operations within one year from the date of lease, and will completely cut out all suitable timber within the term specified in Regulation 28.
    (b.) The lessee shall pay the royalty as aforesaid once in every three months for the period ending on the last days of March, June, September, and December in each and every year, and not later than twenty-one days after the termination of such period.
    (c.) The lessee shall from time to time during the continuance of the term within which the timber is to be cut and removed, after the commencement of active operations as aforesaid, keep accurate and regular books of account, and therein shall from day to day make or cause to be made true, plain, and perfect entries of all such timber as shall be sawn, cut, and removed from the said lands and of the sales thereof.
    (d.) The lessee shall permit the Commissioner, or his agent for the time being, at all convenient times to inspect the said books of account and to take extracts therefrom or to make copies thereof.
    (e.) The lessee shall, within twenty-one days after the termination of the three-monthly periods ending on the last days of March, June, September, and December in each year, give to the Commissioner a true account in writing of all timber sawn, cut, removed, and sold from any allotment leased by him during the preceding three months.
33. The lessee may, at any time during the term within which he is authorised by these regulations to cut and remove timber as aforesaid, or within a period of six months from the termination thereof, take up, carry away, and remove all such buildings, fixtures, machinery, tramways, and plant of whatsoever nature as shall be or have been erected, made, or brought upon the said land by him.
34. If default should be made in payment of the aforesaid royalty within the space of twenty-one days prescribed by