APRIL 15.] THE NEW ZEALAND GAZETTE. 1087
duction of a certificate from the Conservator that with respect to
the original or previous sawmill area the regulations applicable
thereto have been duly complied with.

Royalties on and right to reserved areas.

37. The royalties payable on the reserved areas shall be upon
    the scale fixed by the regulations for the time being in force when
    a license to cut timber therein is issued, or may be at the rates
    fixed by auction for the original license, as may be decided by the
    Commissioner when granting the license for such reserved area;
    and nothing herein shall entitle a licensee to claim that the
    royalties then payable shall be on the scale set forth in these
    regulations. When a license to cut on any portion of a reserved
    area is granted, it shall be granted subject to the regulations in
    force at the date of the granting of such license.

38. The right of the licensee to the reserved areas shall be abso-
    lutely dependent upon his complying with the condition as to the
    continuous working of the sawmill with which they are connected,
    and with his complying with these regulations, and such right shall
    accordingly lapse whenever there has been a breach of conditions.

39. Every sawmill license shall be in the Form No. 2, Sche-
    dule B, appended to these regulations.

40. When cutting the timber on any area granted under Regu-
    lation 32, should the licensee desire to cut slightly outside the
    boundaries of such area, he shall at once make application to the
    Conservator for permission to do so, and the Commissioner may,
    on the recommendation of the Conservator, grant permission for
    an additional area, or areas, not exceeding 20 acres in all, to be
    added to the area stated in the license, and a plan of same shall
    be duly indorsed thereon. But if the area is more than 20 acres
    and up to 50 acres, all expenses of so doing, and of any sur-
    vey that may be occasioned thereby, and any necessary marking
    on the ground, shall be borne and paid by the licensee, and the
    Commissioner may require him to deposit the cost thereof at such
    time as he thinks fit, either before or after permission is given.
    No cutting on such extra area shall take place until permission has
    been so given, and any breach of the conditions herein expressed
    shall entail forfeiture of the license.

Sawmill area in sparsely timbered country.

41. In the case of sparsely timbered country, or where the bush
    has been partly cut or destroyed, and where large initial expen-
    diture by the licensee is required, the Commissioner may, in his
    discretion, authorise the issue of an original license for a sawmill
    area and reserve in connection therewith of such areas, for such
    term and on such special conditions as he may think fit, and such
    license and subsequent licenses to cut on the reserved area shall be
    granted subject to the regulations for the time being in force, in so
    far as they do not conflict with such special conditions.

Sawmill area to be rectangular wherever practicable.

42. As far as possible, sawmill areas shall be in a rectangular
    form, with the proportion of length to breadth of not less than three
    to one, or shall include one side of a watershed, except where
    previous surveys or other circumstances render this impracticable.

Survey fees, survey, and valuation.

43. As soon as practicable after payment of survey fees for a
    sawmill area the necessary survey and valuation shall be made,