Victorian Consolidated Legislation

Forests (Australian Newsprint Mills Limited) Act 1980 - SCHEDULE

THIS AGREEMENT is made 30 October 1980 between the FORESTS COMMISSION
incorporated by the provisions of the Forests Act 1958 of the State of
Victoria of the one part and AUSTRALIAN NEWSPRINT MILLS LIMITED a company
incorporated in the State of Tasmania with its registered office at Boyer
Tasmania of the other part- WHEREAS- Recitals
I. The Company is desirous of establishing in the Albury-Wodonga area the
industry of manufacturing wood pulp and paper from softwood timber.
II. Before the Company incurs the expenditure necessary to establish the
industry it desires to be satisfied that sufficient softwood timber will be
available to enable it to carry on the industry. III. The Commission has
conifer plantations in North-east Victoria and it desires to be satisfied that
it will have a market for softwood timber produced in those plantations. IV.
The parties hereto desire to enter into this Agreement so that upon its
ratification validation and approval by Parliament the provisions hereinafter
appearing shall have full force and effect. NOW IT IS HEREBY AGREED as
follows- PART I-PRELIMINARY
1. Definitions "the Act" means the Act of the Parliament of Victoria to be
passed to ratify validate approve and otherwise give effect to this Agreement;
"this Agreement" means the Agreement as from time to time amended; "area of
supply" means softwood plantations existing from time to time in the State of
Victoria within 200 kilometres by road from the principal post office at
Wodonga using the shortest practicable route;

"Commission" means the Forests Commission and if that Commission ceases to
exist means the body corporate or persons for the time being charged with the
duties or substantially the same duties now performed by the Forests
Commission; "Company" means Australian Newsprint Mills Limited and upon each
assignment in accordance with sub-clause (1) of clause 4 hereof includes the
assignee; "forest officer" has the same meaning as in the Forests Act 1958;
"forest produce" has the same meaning as in the Forests Act 1958; "the
industry" means the manufacture by the Company in the Albury-Wodonga area of
wood pulp and paper from softwood timber; "minimum annual supply" means the
annual quantity which the Commission is to make available from time to time
under clause 14 hereof; "month" means calendar month; "softwood timber" means
timber of the species Pinus radiata and other coniferous species suitable for
the purposes of the industry but does not include any timber which the
Commission requires for sale as logs poles or fencing timber; "tonne" means a
tonne of wet or green softwood timber including bark; and "year" means a
period of twelve months commencing on the first day of July.
2. Interpretation

(1) In this Agreement unless inconsistent with the context or subject-matter
references to any Act shall include all amendments and re-enactments thereof
for the time being in force and all supplemental legislation for the time
being in force whether by regulation rule proclamation or order made or
continuing under that Act or any amendment or re-enactment thereof.

(2) The headings and sidenotes shall not affect the interpretation of this
Agreement.

(3) This Agreement shall be interpreted according to the laws for the time
being in force in the State of Victoria.
3. Agreement to be ratified by Act of Parliament This Agreement shall not be
of any force or effect until it has been ratified validated approved and
otherwise given effect by an Act of the Parliament of Victoria.
4. Operation of industry by assignee

(1) The Company shall be at liberty at any time with the prior written consent
of the Commission to assign its rights under this Agreement.

(2) Upon each such assignment the assignee shall by virtue of the Act be
subject to all the obligations and conditions imposed upon the Company by this
Agreement so far as they remain in force and are capable of taking effect.

(3) Notwithstanding any such assignment Australian Newsprint Mills Limited
shall remain responsible to the Commission for the performance of all the
obligations and conditions imposed upon the Company by this Agreement.
5. In using its powers and applying its discretion whether in this Agreement
or the Act or the Forests Act 1958 the Commission shall so far as the
interests of forest management allow (and the Commission shall for the
purposes of this Agreement be the sole judge of what is proper forest
management) give full recognition of the fact that the Company is engaged in
competitive business. PART II-OPERATION OF THE INDUSTRY Division A-Duration of
Agreement
6. To cease on 30 June 2010 or upon sooner determination This Agreement shall
remain in force until 30 June 2010 or until sooner determination in accordance
with the provisions hereof.
7. Saver of rights The expiration or determination of this Agreement shall not
affect the enforcement of any right obligation or liability theretofore
acquired accrued or incurred.

Division B-Timber rights
8. Rights of lessees, &c. Nothing in this Agreement shall affect the rights
powers and privileges acquired by any person (whether before or after the
commencement of the Act) under the Forests Act 1958 or any other Act.
9. Sale of forest produce or grant of licences not restricted Subject to the
right of the Company under sub-clause (1) of clause 12 hereof to obtain
softwood timber in the area of supply and compliance by the Commission with
its obligations under clause 14 hereof to make available to the Company the
minimum annual supply of softwood timber nothing in this Agreement shall
restrict the Commission's rights pursuant to the Forests Act 1958 to sell or
grant licences to obtain forest produce.
10. Plan of utilization

(1) Not later than 31 March 1981 and 31 March in each year thereafter the
Commission shall after consultation with the Company draw up and deliver to
the Company a plan of utilization for the supply of softwood timber for the
following year and a provisional plan for the supply of softwood timber for
the next two years.

(2) The plan of utilization and the provisional plan shall set out the areas
of the area of supply from which softwood timber may be obtained during the
relevant period and shall specify the location and size of each area and the
respective quantities of softwood timber which the Commission estimates will
be obtainable in each area.

(3) The Commission and the Company may during the currency of any plan of
utilization agree to a modification of the plan.

(4) The company shall conform with each plan or modified plan of utilization.
11. Company to comply with Forests Act, &c. The Company shall comply with the
provisions of the Forests Act 1958 and with all regulations for the time being
in force under the Act.



12. Company's right to softwood timber

(1) The Company without obtaining any lease licence permit or authority shall
have the right to obtain softwood timber by its servants agents or contractors
from the area of supply in conformity with the plan of utilization.

(2) The Company shall obtain softwood timber-

   (a)  from heads and other residual timber from logging and pole and post
        cutting operations;

   (b)  from all standing trees indicated by a forest officer; and

   (c)  as required by the Commission from timber felled or felled and removed
        by or on behalf of the Commission.

(3) The Commission may in its discretion if so requested by the Company modify
the Company's obligation to take softwood timber felled or felled and removed
by or on behalf of the Commission but any of such timber not taken by the
Company shall for the purpose of clause 14 hereof be softwood timber made
available to the Company by the Commission.
13. Purposes for which timber is to be used The Company shall use the softwood
timber made available to it under this Agreement for the purposes of the
industry.
14. Commission's obligations to supply softwood timber

(1) Subject to the provisions of clause 26 hereof the Commission shall make
available to the Company from the area of supply a minimum annual supply of
softwood timber which unless varied pursuant to the provisions of sub-clause
(3) or (4) hereof shall be-

   (a)  during the period ending on 30 June 1981-500 tonnes;

   (b)  during the year 1981-1982-80 000 tonnes;

   (c)  during the year 1982-1983-100 000 tonnes;

   (d)  during the year 1983-1984-110 000 tonnes;

   (e)  during the years 1984-1985 to 2009-2010 inclusive-120 000 tonnes.

(2) The Commission may in its discretion make available to the Company in the
period ending on 30 June 1981 and in any year thereafter a quantity of
softwood timber from the area of supply additional to the minimum annual
supply.

(3) The Commission may from time to time by written agreement with the Company
vary the minimum annual supply for any period commencing from 1 July next
following the date of such agreement.

(4) At any time but not less than once in each period of five years while this
Agreement remains in force the quantity of softwood timber available in the
area of supply shall be assessed by the Commission and on the basis of the
quantity so determined the Commission and the Company may agree to vary the
minimum annual supply for any period commencing from 1 July next following the
date of such agreement.
15. Specifications of softwood timber The Company shall not be bound to accept
any softwood timber which-

   (a)  is not sound and free from rot doze blue stain and charcoal;

   (b)  is not sufficiently straight for the manufacturing processes for the
        time being employed in the industry;

   (c)  is less than 3·6 metres in length or such other minimum length as is
        agreed to from time to time by the Commission and the Company; or

   (d)  is less than 10 centimetres in cross-sectional breadth under bark.
16. Price of softwood timber

(1) For all softwood timber obtained by it under this Agreement the Company
shall pay-

   (a)  as to softwood timber which the Company by its servants agents or
        contractors removes or fells and removes-the royalty payable from time
        to time under this Agreement; and

   (b)  as to softwood timber either felled or felled and removed by or on
        behalf of the Commission-the royalty as aforesaid and a charge to be
        agreed upon from time to time between the Commission and the Company
        for-

   (i)  the cost to the Commission of felling or felling and removal of
        softwood timber in or from the particular area; and

   (ii) the overhead expenses of the Commission in connection therewith.

(2) Failing agreement within fourteen days on the charge referred to in
paragraph (b) of sub-clause (1) hereof the charge shall be determined by the
Commission but so that the part of the charge attributable to the cost to the
Commission of felling or felling and removal of softwood timber in or from any
area shall not exceed the actual cost to the Company of or the payment made by
the Company to contractors for felling or felling and removal (as the case may
be) of softwood timber at that time in similar form in or from areas which are
similar with respect to yield of softwood timber physical circumstances of
extraction and situation in regard to means of transport.
17. Company's obligations to take or pay for softwood timber

(1) Subject to the provisions of clause 27 hereof the Company shall be bound
in each year in which the minimum annual supply of softwood timber to which it
is entitled in that year is available to it either-

   (a)  to take not less than 90 per centum of the minimum annual supply; or

   (b)  if it takes less than 90 per centum of the minimum annual supply to
        pay royalty to the Commission on the deficiency at a rate equal to the
        royalty rate payable in that year under clause 19 or 20 hereof.

(2) If the Company during either or both of the two years next following any
year in which there is a deficiency obtains a quantity of softwood timber in
excess of the minimum annual supply the royalty payable on such excess shall
be reduced by the amount of royalty paid in respect of the deficiency.

(3) After 30 June 1990 "90 per centum" in paragraphs (a) and (b) of sub-clause
(1) hereof may from time to time be modified by agreement between the
Commission and the Company but shall not be reduced below 75 per centum.



18. Payment of royalty The following provisions shall apply with respect to
royalty payable under this Agreement:

   (a)  Royalty shall be payable at such times after the amounts have been
        ascertained and in such manner as the Commission from time to time
        determines.

   (b)  If any royalty due by the Company remains unpaid for sixty days after
        the Commission has demanded payment thereof the Commission may without
        limiting the obligations of the Company under clause 17 hereof by
        notice in writing to the Company suspend its right to obtain softwood
        timber under this Agreement until payment is made.

   (c)  If the Company disputes the amount of any payment demanded by the
        Commission it may make the payment under protest and thereafter shall
        be entitled to take proceedings for recovery of any amount in excess
        of the amount it was liable to pay.
19. Royalty during first period

(1) During the period ending 30 June 1983 the royalty payable shall be at the
rate of $8.25 per tonne.

(2) In the event of all or any of the softwood timber at the time of weighing
not being wet or green or not including bark the Commission shall have the
right to make an appropriate adjustment to the royalty payable in respect of
that timber having regard to the definition of "tonne" herein.
20. Review of royalty

(1) During each successive period of three years from 1 July 1983 the royalty
payable shall be at the rate agreed upon by the Commission and the Company.

(2) If the Commission and the Company fail to agree within fourteen days of
the commencement of any three-yearly period as to any rate of royalty to be
paid during that period the rate shall be determined in accordance with clause
28.

(3) In any such determination the arbitrators or their umpire shall take into
consideration any alteration in circumstances and any other relevant matters
which either of the parties to the reference may bring before the arbitrators
or the umpire.

(4) Where a rate of royalty has been determined as provided by this clause
that rate shall take effect from the commencement of the relevant three-yearly
period.

(5) If any variation in the royalty rate is not determined prior to the
commencement of any three-yearly period the Company shall continue to pay
royalty at the rate payable during the preceding period and as soon as the new
rate has been determined an adjustment shall be made retrospectively to the
commencement of the period.
21. Construction of roads, tracks, &c. by Company The Company shall not within
the area of supply construct any road track or passage or any chute without
the prior consent of a forest officer and shall not within the area of supply
construct any tramway flume or building or erect any haulage or conversion
unit without the prior written consent of the Commission.
22. Determination of quantity of softwood timber

(1) The quantity of softwood timber upon which royalty is payable under this
Agreement shall be determined in such manner as may be agreed upon by the
Commission and the Company or failing agreement within thirty days as the
Commission shall direct.

(2) The place at which the quantity of softwood timber is to be measured shall
be as fixed by the Commission from time to time after consultation with the
Company.
	(3)      (a)	The Company shall provide at its plant or elsewhere as agreed upon by the Commission and the Company a weighbridge or other measuring device acceptable to the Commission and shall during the currency of this Agreement have the weighbridge or other measuring device maintained and its accuracy periodically verified.


   (b)  At all times while the weighbridge or other measuring device is in
        accurate working order the quantity of softwood timber upon which
        royalty is payable under this Agreement shall be determined by
        weighing it on the weighbridge or other measuring device.

   (c)  At all times while the weighbridge or other measuring device is not in
        accurate working order the quantity of softwood timber upon which
        royalty is payable under this Agreement shall be determined in such
        manner as may be agreed upon by the Commission and the Company or
        failing agreement within fourteen days as the Commission shall direct.

23. Company to comply with conditions The Commission may from time to time
give to the Company written notice of conditions which shall apply in the
areas from which it is obtaining softwood timber under this Agreement and the
Company shall comply with the said conditions and ensure that any contractors
who are engaged in obtaining softwood timber under this Agreement have notice
thereof.
24. Requirements in regard to servants, &c. of the Company

(1) The Company shall keep the Commission informed by notice in writing of the
names of its servants agents and contractors who are engaged in obtaining
softwood timber under this Agreement.

(2) The Company shall supply to each such person for production when required
by a forest officer evidence in a form satisfactory to the Commission that he
is engaged in obtaining softwood timber under this Agreement and the Company
shall forthwith inform the Commission in writing whenever any such person
ceases to be so engaged.
	(3)     (a)	The Company shall include in every contract by it with a contractor for obtaining softwood timber under this Agreement provisions requiring the contractor to comply with the Forests Act 1958 the regulations made under the Act and the conditions referred to in clause 23 hereof.


   (b)  The Company shall upon making any such contract forthwith give to the
        Commission written notice of the contract specifying the name of the
        contractor the duration of the contract the quantity of softwood
        timber to be obtained thereunder and the area from which it is to be
        obtained.

(4) The Company shall if so required by the Commission terminate the contract
of any contractor who in the opinion of the Commission has failed to comply
with the Forests Act 1958 the regulations made under the Act or the conditions
referred to in clause 23 hereof.
25. Further Agreement

(1) In the first three months of the last year of this Agreement the
Commission shall if the Company seeks a further Agreement to assure to it
supplies of softwood timber for the continuance and expansion of the industry
investigate the development of the industry and if satisfied that the Company
needs to have supplies of softwood timber assured to it by a further Agreement
enter into negotiations with the Company for that purpose.

(2) When a further Agreement has been agreed upon and executed the Commission
shall (if necessary) recommend to the Minister of Forests that a Bill be
introduced into the Parliament of Victoria as soon as possible to ratify
validate approve and otherwise give effect to it. Division C-Suspension of
obligations and conditions
26. Suspension forests damaged, &c. If any of the softwood plantations in the
area of supply are damaged or destroyed by fire disease or other cause to such
an extent that it is impracticable for the Commission to comply with the
provisions of clause 14 hereof or if by reason of anything beyond the control
of the Commission it is prevent from complying with those provisions the
Company shall have no claim against the Commission for the non-fulfilment of
its obligations under those provisions so far as non-fulfilment is due to any
such cause or thing.
27. Damage or destruction of plant If-

   (a)  the Company's plant or any works used by it for the purpose of
        manufacturing wood pulp or paper are damaged or destroyed by fire or
        other calamity;

   (b)  by reason of anything beyond the control of the Company it is delayed
        in establishing the industry;

   (c)  the carrying on of the industry becomes commercially impracticable
        because of the recession in the wood pulp or paper manufacturing
        industry in Australia;

   (d)  by reason of war strike lockout or action in the nature of a strike or
        lockout the Company is impeded from obtaining softwood timber or
        carrying on production of wood pulp or paper- then in any of those
        events-

   (i)  the Company may apply to the Commission for suspension or a reasonable
        modification of the extent or operation of its obligations under
        clause 17 hereof or for an extension of time for the performance or
        observance thereof;

   (ii) the Commission upon any such application by the Company may grant a
        suspension of the said obligations or a reasonable modification of
        their extent or operation or an extension of time for their
        performance or observance;

   (iii) if the Company is dissatisfied with the decision of the Commission
        upon any such application the matter shall if the Company so elects be
        determined in accordance with clause 28.
28. Arbitration Wherever in any clause of this Agreement it is provided that
any matter shall or may be determined in accordance with this clause-

   (a)  the matter shall be referred to two arbitrators one to be appointed by
        the Company and one by the Commission;

   (b)  the provisions of the Arbitration Act 1958 shall apply to the
        reference; and

   (c)  the arbitrators or umpire or some person appointed on their behalf may
        investigate the Company's affairs and accounts so far as may be
        necessary to assist them to determine any matter referred to them and
        the Company shall give them full access to all accounts and papers
        necessary for that purpose and shall afford them full information and
        assistance. Division D-Determination of Agreement by Commission
29. Commission may determine Agreement in certain events If the Company-

(1) enters into liquidation (other than a voluntary liquidation for the
purposes of reconstruction and assignment of rights under this Agreement);

(2) assigns its rights under this Agreement to a natural person who becomes
bankrupt or makes any arrangement with his creditors;

(3) delays the commencement of commercial production of wood pulp or paper
from softwood timber at a rate not less than 1000 tonnes per month beyond the
year ending on 30 June 1982; or

(4) contravenes or fails to comply with the terms and conditions of this
Agreement for a period of not less than one month after receiving written
notice from the Commission specifying the terms and conditions contravened or
not complied with- the Commission may thereupon determine this Agreement.
Division E-Supplemental
30. Amendment or determination by agreement The Commission and the Company may
by agreement-

   (a)  from time to time amend this Agreement by such additions deletions and
        variations of matters of detail as may be necessary or desirable to
        facilitate the carrying on of the industry; and

   (b)  at any time determine this Agreement upon such terms as they deem fit.
        IN WITNESS whereof the parties hereto have executed this Agreement the
        day and year first before written. The common seal of Forests
        Commission was hereto affixed in the presence of: Commissioner, A. J.
        THREDER L.S. Commissioner, R. J. GROSE The common seal of Australian
        Newsprint Mills Limited was hereto affixed by the authority of:
        Director, K. D. MACPHERSON L.S. Secretary, A. G. CLOUDSDALE
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