(61)

9. That it shall be in the power of the Superintendent, with the approval of the Provincial Council, expressed by resolution to that effect, to determine and cancel the rights granted to the Company, if they are not spending in the province, in carrying on the works, the sum of £1,000 per annum, and have not established works for the refinement of the Petroleum within one year from the time oil is obtained in paying quantities.

10. That the Government shall have power, by any person whom they may appoint, to inspect the books and works of the Company with a view to obtain any information which may be desirable in connection with the foregoing conditions.

THOMAS KELLY,
Provincial Secretary.

Provincial Secretary’s Office,
New Plymouth, May 31, 1866.

I hereby assent to these conditions this first day of June, one thousand eight hundred and sixty-six.

H. R. RICHMOND,
Superintendent.

CONDITIONS

On which the right to sink for Petroleum has been granted to the People’s Petroleum Company.

1. THAT in the opinion of this Council it is desirable that the following shall form the basis of a lease for defining the extent of land over and in which the People’s Petroleum Company shall have the right to sink for Petroleum, and the conditions on which that right shall be granted, viz.:-

2. That the Company shall have the right to sink for Petroleum on the following land, being the part of the Sugar-loaf Reserve east of Carter’s claim, containing four acres, which land is more clearly defined on the accompanying map and coloured purple, and that a lease be granted for a term and on the conditions hereinafter mentioned.

3. That on the condition of obtaining the right above specified, the People’s Petroleum Company shall undertake to raise a Company with a capital of not less than £2,000 for the purposes of fully testing the oil-bearing strata in the block of land herein named, and to expend a sum not less than £1,000 in sinking for Petroleum before the works are abandoned, at the rate of at least £500 per annum. Provided that if at any time the Company shall discontinue their operations, the balance of the said sum of £1,000, which shall not be proved to have been expended in the manner above stated, shall be sued for or recovered by the Superintendent as liquidated damages for non-performance of the conditions of the lease.

4. That the royalty to be paid to the Government by the Company on all the Petroleum procured shall be at the rate of 10 per cent., delivered in sound and tight packages fit for exportation, or an equivalent in money value according to its worth in the market, as the Superintendent may select, such value being determined by arbitration in the event of disagreement between the parties. Provided that the above conditions shall not at any time preclude the Government from levying any general duty on the article if it may be deemed necessary to do so.

5. That the Company, subject to the conditions herein named, shall have the right to sink for or otherwise procure Petroleum in or on the lands herein described for the term of nine years, dating from the assent of the Superintendent to these resolutions.

6. That as the lease is granted only for the purpose of securing to the People’s Petroleum Company the right of prospecting, sinking, or otherwise procuring Petroleum on the lands herein named and described, the Superintendent shall have full power at any time to enter on the said land, by his agents or otherwise, and take possession of any part for any public purpose, or to let the right over the said land to search or mine for any substance, mineral, or metallic ore, on or below the surface, with the sole exception of Petroleum or bituminous shale, and also to give the right to erect any building or machinery, and to enclose grounds (not in the actual occupation of the said Company, as specified in clause 7), and also to prohibit the said Company from sinking, erecting buildings, or making enclosures on any portion of the said land which would obviously interfere with the formation of any necessary road, harbour, or other public work or township contemplated by the Government. Provided that if at any time it is required to enter on land where the Company are carrying on operations, and thus render necessary the removal of their reservoirs, buildings, enclosures, or other plant necessary for the conduct of their business, compensation shall be made for any damage the Company may sustain, and which may be awarded by arbitrators appointed in the usual manner. And it is hereby provided that before any operations are undertaken by the Company to prepare for sinking or erecting machinery or