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38.—Amalgamation of Water Rights.

To give increased facility in working claims, and to prevent unnecessary waste of water, any two or more water rights may run through one race. Provided that the rights amalgamated follow in rotation, and be distributed according to priority of registration; such amalgamation to be registered.

39.—Construction of Tail Races.

Before any person shall construct a tail race, he shall first proceed by notice in the same manner as is directed in Rule 15 for head races. But such notice shall only require to be posted for seven clear days; at the expiration whereof, the applicant shall return to the Warden a copy of the notice, which shall be signed by the holders of the four nearest claims, as expressing their assent to or dissent from the issue of a certificate for such tail race; and the Warden shall enquire into any objection thereto, or into any cause of dissent as aforesaid; and shall thereafter issue or withhold a Certificate of Registration according to the equities of the case.

Provided that compensation shall be allowed for estimated damage (if any), and prior to commencing the construction of such races, such compensation shall be paid to the holder or holders of the claim or right over, under, or through which the proposed race has to be constructed, or a sufficient sum be lodged with the Warden to cover any damage which may be done to such claim.

40.—Use of Tail Races.

Any person wishing to use a tail race may do so on condition of first paying to the owner of such tail race a proportionate share of the expense of construction, such expense to be calculated according to the current rate of wages at the time of application for using such tail race. Provided that the person so using any tail race shall assist in clearing the same whenever it shall be necessary to do so.

41.—Flood Races.

Any person may cut a flood race through or by his claim, subject to such restrictions as the Warden may consider necessary for the public good. Provided that no person shall be compelled to pass on such flood race by his claim, unless he derive any benefit therefrom.

42.—Use of Water in Creek or River Beds.

Any holder of a river claim may use the water in any watercourse on any portion of his claim. Provided he does not interfere with the water before it reaches his claim, and turns the water into its natural course immediately on its leaving his claim; and the holder of such claim shall have an equal right to use the water on any part of his claim, subject to the restrictions aforesaid, as though he used the water in the bed of the watercourse.

43.—Races may be Carried Through Claims.

Upon application being made to the Warden, it shall be competent for him to authorise the applicant to pass a head race or tail race over, under, or through any claim or right.

44.—Certificates Renewable Annually.

Every grant or certificate for a head race shall be brought to the Warden for renewal annually, and if any such grant or certificate is not so brought within thirty days after the expiration of twelve months from the date at which it has been or may be granted, it may be deemed to be forfeited, and the registration thereof may be cancelled.

45.—Use of Water may be Sold.

It shall be lawful for the holder or holders of a water right under "The Gold Fields Act, 1866," or "The Gold Fields Act Amendment Act, 1865," empowering such holder or holders to divert water, and to cut, construct, and use water races, dams, and reservoirs, to sell and dispose of the right to and the use of the whole or any portion of such water.

46.—Tail Water.

All right or control over the water shall cease upon leaving the sluice box of any holder of a water right, except in cases where the length of the head race is one mile or upwards along the course of the race, when the right of control shall remain with the holder of the water right until the water shall enter the natural course of any stream.

47.—Water to be Gauged when Demanded.

It shall be imperative on all race and water right holders who obtain their supply of water from a creek or a river to place a gauge in their respective races, as prescribed in Rule 25, within seven clear days after receiving a written notice from any person entitled to receive a supply of water from the same creek or river, in the form set forth in Schedule B, and shall continue to run the water through such gauge, if required.

V.—DAMS AND PUDDLING MACHINES.

48.—Notice of Construction to be Given.

Any person intending to form a dam or erect a puddling machine shall give notice thereof in writing to the Warden, and to the