4286 NEW ZEALAND GAZETTE No. 178

arbitration either the Grantor shall refund any over payment to the Grantee or the Grantee shall pay any under payment to the Grantor. Any such refund or payment shall bear interest from the date of assessment to actual payment, compounded with quarterly rests at the rate that is 2% above the FRA mid point 30 day bank bill rate as at 10.45 a.m. on Reuters BKBM (or successor page) on the date of assessment.

(e) The Grantor may at any time during the Term advise the Grantee that it has ceased using any Access Road and will no longer carry out the maintenance of such road. In that event the Grantee will be entitled to carry out such maintenance provided that the Grantor contributes to the cost of such maintenance to the extent it continues to use the Access Road. If the Grantor recommences use of any such Access Road on a regular basis, the Grantor will at the request of the Grantee resume responsibility for the maintenance of that Access Road.

(f) Otau Mountain Road and Moumoukai Hill Road. The Grantee shall pay a proportion (commensurate with use) of all costs and expenses payable by the Grantor pursuant to a certain agreement dated the 19th day of October 1959 between the Auckland City Council and Manukau County Council, which agreement relates to the maintenance of the Otau Mountain Road and Moumoukai Hill Road.

4.6 Insurance. The Grantee shall:

(a) (i) insure all trees planted in Hunua forest from the time of planting to the time of severance against all usual risks including partial loss, destruction, injury or damage by fire and lightning for not less than the amount from time to time owing by the Grantor under the Forestry Encouragement Agreements;

(ii) until such time as the loans under the Forestry Encouragement Agreements have been repaid or the obligations to repay the same have been otherwise discharged or cancelled procure completion of all relevant documents noting the respective interests of the Crown under the Forestry Encouragement Agreements, the Grantor and the Grantee;

(iii) on demand by the Grantor produce to the Grantor a copy of such policy and receipts in respect of payment of the premiums for such insurance cover;

PROVIDED THAT the Grantee shall not be required to maintain insurance cover in respect of those areas of the Hunua Forest in respect of which insurance cover has been taken out by the Grantor and continues to be maintained pursuant to the terms of the said Forestry Encouragement Agreements and PROVIDED FURTHER that until such time as the loans under the Forestry Encouragement Agreements have been repaid or the obligations to repay the same have otherwise discharged or cancelled the Grantee shall be liable to reimburse the Grantor for the annual cost of premiums paid by the Grantor in respect of such insurance cover;

(b) The Grantee shall take out and keep in force with a reputable company in the joint names of the Grantor and the Grantee a public liability policy in respect of the exercise of the Grantee’s rights herein on usual commercial terms for cover of not less than $10,000,000.

4.7 Statutory Requirements. Both the Grantor and the Grantee shall comply with all Acts, regulations, bylaws and ordinances relating to the Hunua Forest and the land, in respect of each party’s use thereof.

4.8 Indigenous Vegetation

(a) The Grantee shall leave standing and protect all indigenous vegetation on Reserves and along any waterways.

(b) Where the Grantor in its reasonable opinion believes that there should be protection for any rare or endangered flora or fauna within the Hunua Forest then the Grantor and the Grantee shall consult on appropriate means of protecting such rare or endangered flora or fauna. At the Grantor’s option the Grantee will comply with the protection requirements for such flora or fauna as the Grantor considers necessary provided that the Grantor will compensate the Grantee for all costs and losses resulting from such protection requirements.

(c) The Grantee shall take all reasonable steps to fell and harvest trees on the Hunua Forest in such manner as will avoid any damage to indigenous vegetation growing on any Reserve.

4.9 Protection of Trees

(a) The Grantee shall:

(i) Protect the commercial forest within the Hunua Forest from fire, fungi, disease, insects, pests, weeds and other threats which can be economically prevented or treated;

(ii) Tend, protect and manage the commercial forest within the Hunua Forest in accordance with good and prudent forestry practice.

(b) The Grantor shall protect the Reserves and the parklands immediately adjacent to the Hunua Forest from fire, fungi, disease, insects, pests, weeds and other threats which can be economically prevented or treated.

4.10 Water Quantity and Quality

(a):

(i) As between the Grantor and the Grantee, the Grantor will be entitled to all natural water in the Hunua Forest.

(ii) The Grantee will not take any action which will, or is reasonably likely to, have the effect of materially diminishing the quantity of water which would otherwise be collected in the Reservoirs situated in or adjacent to the Hunua Forest.

(b):

(i) In carrying on its forestry operations in the Hunua Forest the Grantee shall use its reasonable endeavours to minimise pollution or contamination of the Reservoirs and watercourses within the Hunua Forest. Pollution in this context includes turbidity from logging areas and roads as well as faecal coliforms, pesticides, chemicals and fertilisers.

(ii) Where pursuant to the Lease Watercare requests the Grantor to carry out preventative works in order to prevent or minimise any such pollution or contamination the Grantee will upon request of Watercare carry out such works at the cost of Watercare.

4.11 Use of Chemicals. The Grantee shall not use or