May 13.] THE NEW ZEALAND GAZETTE. 1435

representing to the Minister that the licensee is charging
for the supply of electrical energy a rate which is return-
ing an excessive profit, after allowing for the creation of
a reasonable reserve fund, the Minister shall have power
to cause such inquiry and investigation of the licensee’s
books and accounts as he may deem necessary; and if, after
such inquiry and investigation, he is of opinion that unreason-
ably high profits are being made, having regard to all
surrounding circumstances and conditions and to the nature
of the undertaking, the Governor-General may, on the
recommendation of the Minister, from time to time reduce
or otherwise amend the rates permitted to be charged to
consumers under this license.

12. AREA OF SUPPLY.

The area of supply comprises the counties of Waikohu,
Uawa, and Cook, except the area comprised in the Manga-
papa Town District and the Borough of Gisborne, but including
all other town districts in such counties; the said area of
supply being indicated by a distinctive border coloured yellow
on the plan marked P.W.D. 46338, deposited in the office of
the Minister at Wellington, in the Provincial District of
Wellington.

13. SYSTEM OF SUPPLY.

The system of supply shall be as described in paragraph (e)
of clause 3 of the regulations.
The generating voltage shall be approximately 11,000
volts between the terminals.

14. DATUM TEMPERATURE.

For the purposes of calculating stresses as provided in clause
15 of the regulations, the datum temperature shall be taken
as 22 degrees Fahrenheit.

15. EXPIRY OF LICENSE.—CROWN MAY TAKE OVER WORKS
    OR ALLOW LICENSEE TO REMOVE BUILDINGS, ETC.

Upon the expiration of the term of the license hereby
granted, the following provisions shall apply :—
(a.) His Majesty the King may take over and use the
whole of the works hereby authorized, including all structures,
buildings, equipment, machinery, plant, and land, herein-
after in this clause called the “works,” on payment by him
to the licensee of the then value of the works. The price to be
paid under this clause shall be fixed in the same manner as
the price in clause 16 of this license; or
(b.) The Governor-General may, at his option, by Order
in Council, grant to the licensee a new license for a further
period of forty-two years, subject to such terms, conditions,
and payment of rental as may then be imposed by him; or
(c.) If His Majesty the King does not elect to take over
the works under subclause (a), or the Governor-General
declines to issue a further Order in Council under subclause (b)
hereof, the licensee may, within such time and subject to
such conditions as the Minister may then impose, remove
all structures, buildings, equipment, machinery, and plant
erected or installed by the licensee under the powers con-
ferred by this license. If the licensee fails or neglects to
effect such removal within the time or subject to the con-
ditions imposed by the Minister, such structures, buildings,
equipment, machinery, and plant shall, without payment of
any compensation, vest in and become the property of His
Majesty the King.

16. CROWN’S PRIOR RIGHT TO PURCHASE WORKS.

Notwithstanding anything hereinafter contained, the right
is hereby reserved to His Majesty the King to purchase,
at his option, at such price and on such conditions as may
be mutually agreed upon (or, failing such mutual agreement,
then by arbitration in the manner prescribed by the Arbi-
tration Act, 1908), this license, together with the whole or any
part of the business and undertaking of the licensee, so far as
the same relates to or is connected with the exercise of this
license, and together with all real and personal property and
all rights acquired by the licensee under this license and used
or enjoyed in connection therewith. The said right may
be exercised by His Majesty the King at any time during
the currency of this license, but the said price shall not
exceed the original cost of the works (including reasonable
preliminary and engineering expenses), less a deduction for
depreciation at the rate of 2 per cent. per annum on the
original cost on all assets other than land calculated for the
period that such assets have been in service, and also a deduc-
tion in consequence of any burdensome provisions respecting
the use of the electric works or any easements, rights, or
privileges in connection therewith, and shall not include
any sum in respect of the value of the goodwill of the licensee’s
business or undertaking, or in respect of the value of the
license for the unexpired period thereof, or in respect of the
value of any Crown land held or occupied by the licensee in
connection with the undertaking. In addition to the sum
to be paid to the licensee under this clause, there shall
also be paid by His Majesty the King interest at the rate
of £5 per cent. per annum on the actual cost of construction
during each of the first four years respectively, commencing
from the date when the deposit of £500 referred to in clause 22
hereof has been returned to the licensee. On the completion
of the purchase His Majesty the King shall be deemed to be
the assignee of this license, and all the rights vested in the
licensee by the license shall thereupon vest in His Majesty
the King.

17. COMPENSATION PAYABLE FOR LAND INJURIOUSLY
    AFFECTED, ETC.

In respect of all land injuriously affected, and in respect
of all damages done by the exercise of any of the powers
conferred upon the licensee by this license, the licensee shall
from time to time, as and when any such injury or damage
accrues or happens, pay compensation in accordance with
the provisions of the Public Works Act, 1908, in the same
manner (subject to all necessary modifications) as if such
licensee were a local authority and the claim was one for
injury or damage arising out of the construction of a public
work.

18. CROWN NOT LIABLE TO PAY COMPENSATION.

Nothing in this license shall be held to cast upon or
imply any liability upon His Majesty the King or upon the
Government of New Zealand to pay compensation to any
person, corporate body, or local authority by reason of the
exercise by the licensee of the authority hereby granted ;
but the licensee shall be liable for any loss or damage which
any person, corporate body, or local authority may sustain
as the result of the exercise by the licensee of any of the
powers granted by this license.

19. CONSUMERS ENTITLED TO SUPPLY.

The licensee shall supply and sell to any person, com-
pany, or corporate body within the area of supply requiring
the same, for any purpose within that area, electricity to
the extent to which it may be available; provided that
such person, company, or corporate body pays the cost of
connecting his or its premises with the transmission-line
erected by the licensee in pursuance of this license.

20. INTERCHANGE OF SUPPLY OF ELECTRICAL ENERGY.

(a.) In the event of the Minister establishing a hydro-
electric power scheme outside the area of supply of a frequency
of 50 cycles per second on the three-phase alternating-current
system, he may require the licensee to connect that system
with the licensee’s electrical system in such a manner that an
interchange of electrical energy between the two systems may
be made from time to time and when required by either the
licensee or the Minister, up to at least one-half of the total
capacity of the plant installed at the licensee’s power-house.
(b.) The licensee shall erect and maintain in good order, at
the expense of the licensee, the necessary transmission-lines
between the licensee’s power-house and a point on the bound-
ary of the area of supply to be determined by the Minister.
(c.) The Minister shall erect and maintain in good order, at
the expense of the Minister, the necessary transmission-lines
outside the area of supply for the purpose of connecting the
two systems at the point last mentioned in subclause (b)
hereof.
(d.) The licensee and the Minister respectively shall, on
demand, and from time to time as and when required, supply
to each other so much of the surplus electrical energy as is
then required and is available, but not in excess of one-half
of the capacity of the plant installed in the licensee’s power-
house.
(e.) The price to be paid by the licensee or the Minister
shall not exceed the following rates :—
Between the hours of 8 a.m. and 8 p.m. daily : 1d. per
unit.
Between the hours of 8 p.m. and 8 a.m. daily : ½d. per
unit.
To be measured in each case at the point last mentioned in
subclause (b) hereof.
(f.) For the purpose of this clause either the licensee or
the Minister may have the unit measured in kilo-volt-ampere
hours instead of kilowatt hours.

21. DEPOSIT.

The deposit of £500 which the licensee has lodged with
the Public Trustee as a guarantee of good faith shall be
retained as security for the due fulfilment by the licensee of
the terms and conditions contained in this license to be
performed by him: Provided, however, that when and so
soon as the licensee shall have submitted the drawings and