D.—2

8

the exercise of such option by the Company, or where such timber shall be or be likely at any time to be required for holders of timber licenses or miners' rights respectively, or for mining purposes. 19. The Queen shall, on the application of the Company, cause a license to be issued to it, denning the area within which and the period for which the Company shall be entitled, subject to these presents, to exercise the right of cutting and removing timber ; and every such license shall be issued upon such terms and conditions and subject to such reservations as the Queen thinks necessary or reasonable to give effect to the terms of clause 18 hereof. The Company shall, by virtue of such license, have power for itself, its servants and agents, to enter at any time or times upon any of the lands to which such license applies, and may erect and remove any saw-mills or other machinery thereon, and may cut, stack, and remove the timber from time to time within the period prescribed in such license, and shall at all times remove or otherwise dispose of all lops, tops, and refuse timber, in such manner and time as the Queen may require, and shall so exercise the rights hereby conferred as not to obstruct or injure any railway, highway, watercourse, or works, machinery, or appliances of any kind lawfully held or used for mining purposes which is, are, or may be on any such land. After the expiration of any period so prescribed as aforesaid the Company shall vacate and deliver up possession to the Queen of all land mentioned or included in any license issued as aforesaid. 20. The selection by and grant to the Company of any lands within any mining district constituted under " The Mining Act, 1886," which may abut on or include any river or watercourse, shall not be deemed to give the Company, or any person claiming through or under the Company, any right or title to the uninterrupted flow of the water therein, or to give any claim for damage by reason of the interruption of such flow or for the pollution of the water in such river or watercourse by mining operations, or by the deposit of tailings or mining debris therein, or to give any further or better title in respect of any such river or watercoiirse, or the water therein, than would be acquired by any person purchasing lands from the Crown that are or may be subject to the provisions of section 3 of " The Mining Act Amendment Act (No. 2), 1887." Every Crown grant that may be issued to the Company, or to any person or persons by its direction, or in accordance with these presents, shall have a provision to the effect hereinbefore mentioned set forth therein. 21. Any holder of a miner's right shall be entitled at any time to cut and construct any head-race, tail-race, tunnel, or channel, or any other work for mining purposes, over, across, or under the said railway, but so as not to interfere with the permanence, stability, or working thereof, and upon and subject to the provisions of "The Mining Act, 1886," and to such other terms and conditions as may be imposed in any case by the Engineer and the Warden of the mining district in which this provision shall become operative. 22. Any holder of a miner's, right or of a "prospecting license" issued under the provisions of " The Mining Act, 1886," may, subject to the law affecting such miner's right or the terms of such license, enter upon any land within the authorised area, and search for gold or silver therein or thereon, at any time prior to the grant of such lands by the Crown to the Company. 23. Nothing contained in these presents shall affect the right of the Queen to resume, pursuant to " The Mining Act, 1886," any lands granted to the Company, as effectually as if the same had been alienated by the Crown by way of absolute sale or lease. 24. With all convenient speed the parties hereto shall ascertain and agree upon the proportion which the estimated cost of construction of the several sections of the said railway, or such other sections as shall be agreed upon between the parties hereto, bears towards the sum of two million five hundred thousand pounds, being the estimated cost of construction of the said railway, so far as the same relates to the lands to be granted by the Queen to the Company ; and the amount of such proportionate estimated cost of construction of each respective section when so ascertained shall be entered against such section in an account which shall be kept by the Queen with the Company for that

Licenses to issue to Company in respect of timber rights.

Powers and liabilities of Company thereunder.

Selection and grant of lands to Company not to give riparian rights.

Crown grants to contain provision to effect of clause.

Holder of a miner's right entitled to construct water-races or works for mining purposes on or over railway, subject to conditions.

Holders of miner's right or prospecting license entitled to search for gold or silver on lands within authorised area.

Reservation of right of Crown to resume under " The Mining Act, 1886," lands granted to Company. Parties to ascertain and agree upon proportionate cost that construction of sections of railway bears to £2,500,000, being estimated cost of railway. Account to be kept of such cost, and value of land to which Company shall be entitled.