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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Wood Processing (Wesbeam) Agreement
Bill 2002
CONTENTS
1. Short title 1
2. Commencement 2
3. Interpretation 2
4. Agreement ratified and implementation authorised 2
Schedule 1 -- Wood Processing
(Wesbeam) Agreement 3
page i
140--1
Western Australia
LEGISLATIVE ASSEMBLY
Wood Processing (Wesbeam) Agreement
Bill 2002
A Bill for
An Act to ratify, and authorise the implementation of, an agreement
between the State and Wesbeam Pty Ltd and Wesbeam Holdings
Limited relating to the supply, harvesting and processing of
plantation timber for the manufacture of timber products.
The Parliament of Western Australia enacts as follows:
1. Short title
This Act may be cited as the Wood Processing (Wesbeam)
Agreement Act 2002.
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Wood Processing (Wesbeam) Agreement Bill 2002
s. 2
2. Commencement
This Act comes into operation on the day on which it receives
the Royal Assent.
3. Interpretation
5 In this Act --
"the Agreement" means the Wood Processing (Wesbeam)
Agreement, a copy of which is set out in Schedule 1, and
includes that Agreement as varied from time to time in
accordance with its provisions.
10 4. Agreement ratified and implementation authorised
(1) The Agreement is ratified.
(2) The implementation of the Agreement is authorised.
(3) Without limiting or otherwise affecting the Government
Agreements Act 1979, the Agreement operates and takes effect
15 despite any other Act or law.
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
Schedule 1 -- Wood Processing (Wesbeam) Agreement
[s. 3]
THIS AGREEMENT is made this 11th day of August 2002
BETWEEN
THE HONOURABLE DR. GEOFFREY IAN GALLOP, B.Ec., MA., MPhil.,
DPhil., M.L.A., Premier of the State of Western Australia, acting for and on
behalf of the said State and its instrumentalities from time to time (hereinafter
called "the State") of the first part,
WESBEAM PTY LTD ACN 004 268 017 of Suite 9, 89 Forrest Street,
Cottesloe, Western Australia (hereinafter called "the Company" in which term
shall be included its successors and permitted assigns) of the second part, and
WESBEAM HOLDINGS LIMITED ACN 095 594 826 of Suite 9, 89 Forrest
Street, Cottesloe, Western Australia (hereinafter called "the Guarantor") of the
third part.
WHEREAS:
A. The State of Western Australia has established softwood plantations on
land covering and adjacent to the aquifer known as the Gnangara Mound.
The Gnangara Mound is an important source of potable water for
Western Australia. The State wishes the progressive harvesting of its
softwood plantations on and adjacent to the Gnangara Mound to continue
as part of its plans to protect the Gnangara Mound groundwater resource.
B. The Company wishes to establish and operate in Western Australia at the
Site a plant to process Timber into laminated veneer lumber and other
Timber Products. The Company intends to market laminated veneer
lumber within Australia as a suitable substitute for large dimension
structural beams produced from old growth hardwood forest resource.
The Company has also identified overseas markets for the dry veneer and
other Timber Products to be produced by it and local markets for residues
resulting from its wood processing activities.
C. Before establishing that plant the Company needs (among other things) to
be assured that during the currency of this Agreement it can obtain on
reasonable and commercial terms from the State's softwood plantations
on and adjacent to the Gnangara Mound and from other parts of the
Timber Supply Area a reliable supply of Timber suitable for the
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Schedule 1 Wood Processing (Wesbeam) Agreement
production of laminated veneer lumber and other Timber Products. The
Company also wishes to have the opportunity during the currency of this
Agreement of obtaining additional Timber from the Timber Supply Area
if such Timber becomes available.
D. The State recognises:
(a) that the harvesting of Timber from the State's softwood plantations
on and adjacent to the Gnangara Mound will assist the State in
implementing its plans to protect the Gnangara Mound
groundwater resource;
(b) that it is in the interests of the State that Timber harvested by the
Commission from the Timber Supply Area be fully processed in
Western Australia; and
(c) that the Company's proposed wood processing activities under this
Agreement will add value to an important resource of the State.
Accordingly and for the purpose of promoting employment opportunities
and industrial development generally the State has agreed to assist the
Company on the terms of this Agreement.
E. For the purposes of providing part of the Company's Timber
requirements for the Plant during the Further Term (as defined in
clause 6) and of the Company being granted in accordance with, and
subject to the conditions set out in, clause 6 rights to the supply by the
Commission of Timber (if available) for the Plant during the Further
Term, the Company proposes to spend $1,000,000 during each Year of
the Term commencing from 1 July 2009 on planting in the Timber
Supply Area trees suitable for the production of Timber Products. The
Company also considers such planting will allow the Plant's production
during the Further Term to be increased and assist endeavours by the
State to address land salinity concerns in the Timber Supply Area.
NOW THIS AGREEMENT WITNESSES:
1. In this Agreement subject to the context:
"Additional Area" means that land being at the date of this Agreement
portion of Lot 10053 on Deposited Plan 186030 and being part of the
land in Certificate of Title Volume 1659 Folio 100 and comprising an
area of 5 hectares at Neerabup, Western Australia as shown coloured
green on the plan "A" attached hereto and initialled by or on behalf of the
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Wood Processing (Wesbeam) Agreement Schedule 1
parties on the date of this Agreement for the purpose of identification and
which the Company has or will have the option to purchase from
LandCorp on the terms and conditions of the Option Deed. The
Additional Area adjoins the 10 hectares of land at Neerabup, Western
Australia that the Company has agreed or will agree to purchase from
LandCorp on the terms and conditions of the Contract of Sale;
"Additional Timber Limit" means in relation to a Year 90,000 cubic
metres less the total quantity of Timber offered by the Commission in
respect of that Year (including pursuant to past offers) to the Company as
referred to in clause 5(2) and accepted by the Company or the subject of a
counter-offer by the Company which is accepted by the Commission;
"advise", "apply", "approve", "approval", "consent", "certify",
"direct", "notice", "notify", "request", or "require", means advise,
apply, approve, approval, consent, certify, direct, notice, notify, request
or require in writing as the case may be and any inflexion or derivation of
any of those words has a corresponding meaning;
"Available Additional Timber" has the meaning given to it in the
Production Contract;
"CALM Act" means the Conservation and Land Management Act 1984;
"Commencement Date" means the date on which the Bill referred to in
clause 3 commences to operate as an Act;
"Commission" means the Forest Products Commission established under
the Forest Products Act;
"Commission Sharefarmed Land" means land that is the subject of a
timber sharefarming agreement made pursuant to section 34B of the
CALM Act and which pursuant to the transitional provisions of
schedule 1 clause 4 to the Conservation and Land Management
Amendment Act 2000 has effect as if it had been entered into by the
Commission, and land that is the subject of a timber sharefarming
agreement made pursuant to section 52 of the Forest Products Act;
"Commonwealth" means the Commonwealth of Australia and includes
the Government for the time being thereof;
"Concurrent Contract" means a contract under which the Commission
makes, or is to make, Timber available for supply to the Company and
which results from the acceptance by the Company of an offer of a
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Schedule 1 Wood Processing (Wesbeam) Agreement
quantity of Timber as referred to in clause 5(2) or the Commission's
acceptance of a counter-offer from the Company for the same or a lesser
quantity of Timber;
"Contract of Sale" means the contract of sale entered into or to be
entered into on or about the date of this Agreement between LandCorp,
the Company and the Guarantor for the purchase by the Company from
LandCorp of the Site subject to the Bill to ratify this Agreement being
passed by the State Parliament of Western Australia and commencing to
operate as an Act as referred to in clause 3;
"cubic metre" means a cubic metre of Timber under bark calculated on
the basis that the length of each softwood log taken into account is the
sum of the length of each billet of 2.5 metres in length (or such other
length as may from time to time be agreed in writing by the Company
and the Commission) able to be cut from the softwood log;
"Department" means the Department of Conservation and Land
Management referred to in section 32 of the CALM Act;
"Departmental land" means:
(a) State forest and timber reserves within the meaning of the
CALM Act;
(b) land that is the subject of a declaration under section 87(2) of the
CALM Act; and
(c) land held by the Executive Director under section 131 of the
CALM Act;
"Departmental Sharefarmed Land" means land that is the subject of a
timber sharefarming agreement made pursuant to section 34B of the
CALM Act (not being a timber sharefarming agreement to which the
transitional provisions of schedule 1 clause 4 to the Conservation and
Land Management Amendment Act 2000 apply);
"Executive Director" means the executive director of the Department
referred to in section 36(1) of the CALM Act;
"Forest Products Act" means the Forest Products Act 2000;
"LandCorp" means the Western Australian Land Authority a body
corporate established under the Western Australian Land Authority
Act 1992;
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Wood Processing (Wesbeam) Agreement Schedule 1
"laws relating to native title" means laws applicable from time to time
in Western Australia in respect of native title and includes the Native
Title Act 1993 (Commonwealth);
"local government" means a local government established under the
Local Government Act 1995;
"Minister" means the Minister in the Government of the State for the
time being responsible for the administration of the Act to ratify this
Agreement and pending the passing of that Act means the Minister for
the time being designated in a notice from the State to the Company and
includes the successors in office of the Minister;
"Minister for Planning" means the Minister in the Government of the
State for the time being responsible for the administration of the Town
Planning and Development Act 1928;
"month" means calendar month;
"Option Deed" means the deed entered into or to be entered into on or
about the date of this Agreement between LandCorp, the Company and
the Guarantor for the grant by LandCorp to the Company of an option to
purchase the Additional Area subject to the Bill to ratify this Agreement
being passed by the State Parliament of Western Australia and
commencing to operate as an Act as referred to in clause 3;
"person" or "persons" includes bodies corporate;
"Plant" means the plant and all necessary ancillary buildings, works,
plant and equipment and services to be constructed and established by the
Company on the Site in accordance with clause 4 for the processing by
the Company of Timber into laminated veneer lumber and other Timber
Products;
"Production Contract" means the contract in the form marked "B"
initialled by or on behalf of the parties on the date of this Agreement for
the purpose of identification and under which the Commission is to make
Timber available for supply to the Company as referred to in clause 5(1);
"Public land" means Crown land within the meaning of section 11 of the
CALM Act and Departmental land;
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Schedule 1 Wood Processing (Wesbeam) Agreement
"residues" means green residues, dry residues and bark by-products
resulting from the production of Timber Products by the Company at the
Plant;
"Site" means the land being at the date of this Agreement portion of
Lot 10053 on Deposited Plan 186030 and being part of the land in
Certificate of Title 1659 Folio 100 and comprising an area of 10 hectares
at Neerabup, Western Australia as shown coloured red on the plan
marked "A" attached hereto and initialled by or on behalf of the parties
on the date of this Agreement for the purpose of identification and which
the Company has agreed or will agree to purchase from LandCorp on the
terms and conditions of the Contract of Sale. If the Company acquires
ownership of the Additional Area pursuant to the exercise of the option in
that regard granted or to be granted to it under the Option Deed, a
reference in this Agreement (other than in the definition of Contract of
Sale in this clause) to the Site will from then on include the Additional
Area;
"Term" means the term of this Agreement specified in clause 24(1);
"this Agreement", "hereof" and "hereunder" refer to this Agreement
as from time to time added to, varied or amended;
"Timber" means timber of the genus pinus and the species pinaster or
radiata or other species agreed in writing by the Commission and the
Company from time to time and in respect of which the Commission has
at the relevant time harvesting and sale rights;
"Timber Products" means laminated veneer lumber, dry veneer,
plywood and I-joists and such other allied products as the Minister may
approve from time to time for the purpose of this Agreement;
"Timber Supply Area" means:
(a) Public land;
(b) Commission Sharefarmed Land; and
(c) Departmental Sharefarmed Land,
within a geographical radius of 250 kilometres of the Site; and
"Year" means the period from and including 1 July of any year to and
including 30 June of the next year.
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
Interpretation
2. (1) In this Agreement:
(a) monetary references are references to Australian currency
unless otherwise specifically expressed;
(b) power given under any clause other than clause 15 to extend
any period or date shall be without prejudice to the power of
the Minister under clause 15;
(c) clause headings do not affect interpretation or construction;
(d) words in the singular shall include the plural and words in the
plural shall include the singular according to the requirements
of the context;
(e) one gender includes the other genders;
(f) a covenant or agreement by more than one person binds, and
is enforceable against, those persons jointly and each of them
severally;
(g) reference to an Act includes the amendments to that Act for
the time being in force and also any Act passed in substitution
therefor or in lieu thereof and the regulations for the time
being in force thereunder;
(h) reference in this Agreement to any other document includes
that document as from time to time added to, varied or
amended and notwithstanding any change in the identity of
the parties;
(i) reference to a clause or schedule is a reference to a clause or
schedule to this Agreement, and a reference to a subclause or
paragraph is a reference to the subclause of the clause or
paragraph of the clause or subclause as the case may be in, or
in relation to, which the reference is made;
(j) reference to the Commission includes the person or body for
the time being exercising the statutory powers and functions
relevant to this Agreement exercised by the Commission at
the date of this Agreement; and
(k) "including" means "including, but not limited to".
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Schedule 1 Wood Processing (Wesbeam) Agreement
(2) Nothing in this Agreement shall be construed to exempt the State
or the Company from compliance with or to require the State or the
Company to do anything contrary to any law relating to native title
or any lawful obligation or requirement imposed on the State or the
Company as the case may be pursuant to any law relating to native
title.
(3) Nothing in this Agreement shall be construed to exempt the
Company from compliance with any requirement in connection
with the protection of the environment arising out of or incidental
to its activities under this Agreement that may be made pursuant to
the Environmental Protection Act 1986.
Ratification and operation
3. (1) The State must introduce and sponsor a Bill in the State Parliament
of Western Australia to ratify this Agreement and endeavour to
secure its passage as an Act prior to 26 September 2002 or such
later date as may be agreed between the parties hereto.
(2) The provisions of this Agreement other than this clause and
clauses 1 and 2 will not come into operation until the Bill referred
to in subclause (1) has been passed by the State Parliament of
Western Australia and comes into operation as an Act.
(3) If by 24 October 2002 the said Bill has not commenced to operate
as an Act then, unless the parties hereto otherwise agree, this
Agreement will then cease and determine and no party hereto will
have any claim against any other party hereto with respect to any
matter or thing arising out of, done, performed, or omitted to be
done or performed under this Agreement.
(4) On the said Bill commencing to operate as an Act all the provisions
of this Agreement will operate and take effect notwithstanding the
provisions of any Act or law.
Establishment of the Plant
4. (1) The Company hereby covenants with the State that by
31 December 2002 the Company will commence to erect and
thereafter will diligently proceed with the construction and
establishment on the Site of a plant designed to process and
capable of processing not less than 160,000 cubic metres per year
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
of Timber into laminated veneer lumber and other Timber
Products, and will within 2 years after the commencement thereof
complete the construction and establishment of the plant on the
Site and commence operating it.
(2) In constructing, establishing and operating the Plant the Company
must comply with all statutes, regulations and by-laws and the
requirements of any relevant public, local government or other
authority.
Supply of Timber during the Term
5. (1) The State must ensure that the Commission enters into the
Production Contract and during the period commencing on the
Commencement Date (or if that date is for any reason considered
inappropriate by the Commission and the Company, such later date
as they may agree in writing) and expiring on 30 June 2029
makes available for supply to the Company at the Site up to
4,120,000 cubic metres (or such lesser quantity as is agreed
between the Commission and the Company) of Timber in
accordance with the log specifications, at the prices and upon the
other terms and conditions agreed between the Commission and
the Company in or under the Production Contract. The Company
and the Guarantor must enter into the Production Contract.
(2) During the period referred to in subclause (1) the State must until
the Additional Timber Limit for each then remaining Year of the
Term has been reached:
(a) ensure that except as otherwise permitted under the
Production Contract the Commission does not sell, or agree
to make available for supply, to a third party Available
Additional Timber, or Timber that would be Available
Additional Timber if immediately before that sale was made
or that agreement was entered into a calculation of Available
Additional Timber was undertaken pursuant to clause 10.1
of the Production Contract and immediately notified to the
Company pursuant to clause 10.2 of the Production
Contract, which if offered to the Company and accepted by
it would not cause the Additional Timber Limit for the Year
or Years of its intended supply to be exceeded, without first
offering to the Company to make that Timber available for
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Schedule 1 Wood Processing (Wesbeam) Agreement
supply to it at the Site upon the terms and conditions for
such offer in the Production Contract; and
(b) if a periodic notification to the Company from the
Commission under the Production Contract of Available
Additional Timber discloses that not less than 5,000 cubic
metres per Year of Timber of the same specifications as to
age, quality and dimensions would be available for supply
from the Timber Supply Area for a period of not less than 5
consecutive Years that would commence within a timeframe
agreed between the Commission and the Company and
expire on or before 30 June 2029, ensure that the
Commission offers to the Company to make available for
supply to it at the Site for each Year of that period of supply
and upon the terms and conditions for such offer in the
Production Contract the quantity of such Timber disclosed
as available for that Year which if offered to the Company
and accepted by it would not cause the Additional Timber
Limit for that Year to be exceeded.
(3) For the purposes of this Agreement in respect of the Production
Contract and each Concurrent Contract the Forest Products Act
shall be deemed modified by:
(a) the deletion of sections 58, 59 and 61(b)(ii); and
(b) the insertion in the first line of section 61 after "production
contract" of the words "(other than provisions as to the term
of the production contract, the quantities of timber to be
made available by the Commission under it and the prices
payable for such timber)".
(4) If any of the State's softwood plantations or other parts of the
Timber Supply Area are damaged or destroyed by fire, disease or
other cause to such an extent that it is impracticable for the State to
comply with the provisions of subclauses (1) or (2) or if by reason
of anything beyond its reasonable control the State is prevented
from complying with those provisions the Company will have no
claim against the State or against the Commission for the
nonfulfilment of their obligations under or as referred to in those
provisions so far as nonfulfilment is due to any such cause.
(5) (a) Subject to paragraph (c), if during the Term the
Commission or the State is a party to an agreement which
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
provides for the supply to a third party from the Timber
Supply Area of 50,000 cubic metres or more over a period
of 5 or more consecutive years, or 10,000 cubic metres or
more in a 12 month period, of Timber:
(i) meeting the specifications applying to Timber to be
supplied under the Production Contract; and
(ii) to produce, or which the Commission is reasonably
satisfied the third party uses or intends to use to
produce, one or more Timber Products for sale in
Western Australia; and
(iii) at delivered prices to the third party more favourable
on the whole to the third party than those under
which the Company will be supplied during the
same period under the Production Contract or, if a
Concurrent Contract provides for the supply of
Timber of those specifications, under that
Concurrent Contract and for that Timber,
(the quantity of Timber meeting the criteria in
subparagraphs (i) and (ii) above being called the "relevant
quantity", the period of supply of such Timber being
called the "relevant period of supply" and a contract
referred to in subparagraph (iii) above under which the
Company is being supplied on the less favourable
delivered prices being called the "relevant contract") the
State must ensure that the Commission in accordance with
this subclause (5) makes the more favourable delivered
prices available in respect of the relevant contract on a
whole of terms basis to the Company from the beginning
of the relevant period of supply in the case of a third party
agreement that specifies the use of the Timber as being to
produce one or more Timber Products, or in the case of a
third party agreement that does not specify the use of the
Timber as being to produce one or more Timber Products
from the time the Commission is reasonably satisfied that
the third party uses or intends to use the Timber to produce
one or more Timber Products, until:
(iv) the expiration or earlier determination of the relevant
period of supply to the third party; or
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Schedule 1 Wood Processing (Wesbeam) Agreement
(v) the expiration or earlier determination of the relevant
contract; or
(vi) the Timber to be supplied to the third party no
longer meets the specifications applying to Timber
to be supplied under the Production Contract,
whichever shall occur first.
The Commission must make the more favourable delivered
prices available on a whole of terms basis by way of
discount, during the period the Company is entitled to such
discount, on the delivered prices otherwise applicable
during such period under the relevant contract and for a
quantity of Timber up to but not exceeding in aggregate
between all of the relevant contracts, the relevant quantity.
If the Company is entitled to a discount under both the
Production Contract and a Concurrent Contract such
discount will first be made available to the extent permitted
under the Production Contract. The Company is not
entitled to a discount for a quantity of Timber exceeding in
aggregate between the Production Contract and Concurrent
Contracts the relevant quantity nor for Timber not meeting
the specifications applying to Timber to be supplied under
the Production Contract. This subclause (5) does not
require the Commission to make available for supply to the
Company more Timber than it is otherwise required to do
so under the Production Contract or relevant Concurrent
Contract.
(b) If the Company believes that there are grounds on which
the Commission may be reasonably satisfied in terms of
paragraph (a)(ii), then the Company may give notice to the
Commission specifying those grounds and requesting the
Commission to determine whether or not it is reasonably
satisfied in terms of that paragraph. The State must ensure
that within 90 days after receiving the notice the
Commission:
(i) determines whether or not it is reasonably satisfied
in terms of paragraph (a)(ii), having regard to the
grounds specified in the notice and any other
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Wood Processing (Wesbeam) Agreement Schedule 1
relevant information reasonably available to the
Commission at the time the determination is
required to be made; and
(ii) notifies the Company of the determination.
If the Company disputes the Commission's determination
it may refer their dispute to arbitration under the provisions
of the Commercial Arbitration Act 1985 within 30 days
after being notified of the determination. If no such
referral is made the determination will be final.
(c) Paragraph (a) does not apply:
(i) to an agreement with a third party (whether entered
into before or after the date of this Agreement) for
the supply by the Commission or the State of Timber
which is to be sent outside of Western Australia; or
(ii) to an agreement with a third party (whether entered
into before or after the date of this Agreement) who,
in response to a request for tenders by the
Commission (and which request was also open to
the Company to respond to), tendered to be supplied
by the Commission with the Timber the subject of
the agreement; or
(iii) to an agreement between the Commission or the
State and a third party who is or becomes a related
body corporate (as defined in the Corporations
Act 2001) of the Company or who is a director or
secretary of the Company or of a related body
corporate of the Company; or
(iv) to any other agreement with a third party that was
entered into before the date of this Agreement unless
it is expressly varied after the date of this Agreement
by written agreement between the Commission or
the State as the case may be and the third party to
provide for the supply of Timber at delivered prices
to the third party more favourable on the whole than
those under which the third party was previously
being supplied by the Commission or the State as the
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case may be. The possible application of
paragraph (a) will then be considered on the basis of
it being an agreement for supply of Timber for the
remaining term of that agreement and for the
quantity of Timber to be supplied over that
remaining term.
Supply of Timber during the Further Term
6. (1) (a) In this Agreement "Available Future Timber" means
the aggregate quantity (if any) of Specification Timber
that the Commission determines as at 30 June 2027 and
in accordance with the provisions of this definition will
be available or is likely to be available (within the limits
of sound silvicultural practice) for supply by the
Commission during the Further Term from the Timber
Supply Area in equal (or nearly as practicable equal)
quantities being not less than 1,000 cubic metres, and not
more than the Future Timber Limit, for each Year of the
Further Term after excluding only:
(i) subject to clauses 10.1(b) - 10.1(e) both inclusive of
the Production Contract, the quantity of Timber the
Commission considers would be required to be made
available by the Commission or the State from the
Timber Supply Area during the balance of the
Term and during the Further Term for supply
under those of the agreements, renewals, extensions
and replacement agreements referred to in
clause 10.1(a)(i) of the Production Contract that are
in force on 30 June 2027 or which at that date are
proposed to be entered into, renewed, extended or
replaced (as permitted under the Production
Contract) by the State or by the Commission as the
case may be, and on the basis that if the term of any
such agreement then in force or to be entered into or
as renewed, extended or replaced as the case may be
(other than the Production Contract, Concurrent
Contracts and agreements referred to in
clauses 10.1(a)(i)E, not being agreements for the
supply of Timber over a period of 5 or more years
expiring on or shortly before 30 June 2029,
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10.1(a)(i)F, 10.1(a)(i)G, 10.1(a)(i)H or in 10.1(a)(i)J
of the Production Contract which replace those
agreements referred to in clauses 10.1(a)E, not being
agreements for the supply of Timber over a period of
5 or more years expiring on or shortly before
30 June 2029, 10.1(a)(i)F, 10.1(a)(i)G or 10.1(a)(i)H
of the Production Contract or are renewals or
extensions of such replacement agreements) would
otherwise expire prior to 1 July 2055 the agreement
will for the purpose of the Commission's
determination be treated as continuing in force until
that date for the yearly supply during that continued
term of the aggregate quantity of the Timber that is
required to be made available under it during the last
year of its term and from the supply area applicable
at that time; and
(ii) the quantity of Timber which the Commission would
otherwise have available (within the limits of sound
silvicultural practice) for supply under an agreement,
or a renewal, extension or replacement of an
agreement referred to in clause 10.1(a)(i) of the
Production Contract but which comprises Subject
Timber (as defined in clause 10.3A of the
Production Contract),
and including Timber referred to in subparagraph (i) of
the definition of Specification Timber in paragraph (b) in
priority to the Timber referred to in subparagraph (ii) of
that definition, and the Timber referred to in that
subparagraph (ii) in priority to the Timber referred to in
subparagraph (iii) of that definition.
(b) In this Agreement:
"Further Term" means the term commencing on
1 July 2029 and expiring on 30 June 2054;
"Future Timber Limit" means in relation to each Year
of the Further Term:
(i) if during the Relevant Period the Company
purchases under the Production Contract and
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Concurrent Contracts not less than 90% (or such
other percentage as the Minister and the Company
may agree in writing is appropriate in the
circumstances) of the quantity that is equal to the
aggregate of:
A. the quantity of Timber the Commission
makes available for purchase by the
Company during the Relevant Period under
the Production Contract and Concurrent
Contracts less:
(1) the quantity of Timber that the
Commission was obliged to but did
not deliver to the Company during
the Relevant Period for reasons
other than the forfeiture of such
Timber under the Production
Contract or Concurrent Contracts or
the refusal of the Company to accept
delivery of such Timber including
on the basis it was excused from
doing so under the force majeure
provisions of the Production
Contract or a Concurrent Contract as
the case may be; and
(2) the quantity of Timber that under the
force majeure provisions of the
Production Contract or the
Concurrent Contracts as the case
may be the Commission was
excused from its obligation to
deliver to the Company during the
Relevant Period: and
B. the quantity of Timber the making available
of which for purchase by the Company
under the Production Contract or a
Concurrent Contract or Concurrent
Contracts was reduced or suspended by the
Commission for any part or parts of the
Relevant Period under clause 23.4 of the
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
Production Contract or similar provisions of
a Concurrent Contract,
250,000 cubic metres; or
(ii) if subparagraph (i) of this definition does not apply:
A. then a quantity equal to the lesser of 250,000
cubic metres and the aggregate of :
(1) the average Yearly quantity during
the Relevant Period of Timber that
the Company purchases under the
Production Contract; and
(2) the average Yearly quantity during
the Relevant Period of Timber that
the Company purchases under
Concurrent Contracts; or
B. such greater quantity of Timber (not
exceeding 250,000 cubic metres) which the
Minister, after consultation with the
Company as to its ability to use such Timber
in the Plant's operations during the Further
Term and consultation with the Commission
and having regard to clause 6(2)(d), may in
the Minister's discretion approve;
"Relevant Period" means the period commencing on
1 July 2022 and expiring on 30 June 2027 or such other
period expiring not later than 30 June 2027 as the
Minister and the Company may agree in writing is
appropriate in the circumstances; and
"Specification Timber" means:
(i) Timber meeting the specifications at 30 June 2027
for Timber to be supplied under the Production
Contract; and
(ii) if during the Relevant Period the Company
purchases under a Concurrent Contract or
Concurrent Contracts more than 50,000 cubic metres
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Wood Processing (Wesbeam) Agreement Bill 2002
Schedule 1 Wood Processing (Wesbeam) Agreement
of Timber of the same specifications as to age,
quality, and dimensions, Timber meeting those
specifications; and
(iii) Timber (if any) of other specifications which the
Minister, after consultation with the Company as to
its ability to use such Timber in the Plant's
operations during the Further Term and consultation
with the Commission and having regard to
clause 6(2)(d), may in the Minister's discretion
approve for inclusion in the Commission's
determination of Available Future Timber.
(2) If at 1 July 2027:
(a) the Company is not in default under this Agreement or
the Production Contract or a Concurrent Contract; and
(b) the Minister is satisfied that the Company has spent not
less than $1,000,000 per Year (or such lesser amount as
the Minister determines is reasonable in the
circumstances) during the period commencing on
1 July 2009 and expiring on 30 June 2027 on planting in
the Timber Supply Area trees of a genus and species
suitable for the production of Timber Products to provide
timber for the Plant during the Further Term; and
(c) the Commission has determined that there is Available
Future Timber during the Further Term,
the State must ensure that the Commission as soon as practicable
after 1 July 2027 enters into negotiations with the Company for
the supply of the Available Future Timber (or such lesser
quantity as is agreed between the Commission and the Company)
to the Company during the Further Term upon reasonable and
commercial terms to be agreed between the Company and the
Commission for the purpose of producing laminated veneer
lumber, dry veneer, plywood and I-joists and other allied
products at the Plant. However, their agreement must:
(d) include the Company's agreement to process at the Plant
all the Timber (within the limits of sound silvicultural
practice and the Company's log specifications from time
page 20
Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
to time for such Timber to be processed at the Plant) from
the Company's tree planting programme referred to in
recital E; and
(e) address the extent to which such Timber will be
processed from time to time in priority to, or on a
proportionate basis with, Timber that can be made
available by the Commission; and
(f) include provisions that will allow the Commission to sell
or otherwise dispose of Timber made available to the
Company but which the Company does not purchase; and
(g) include provisions that will allow the Commission to
reduce the total quantity of Timber to be made available
for supply to the Company during the Further Term if the
Company is not purchasing all of the Timber being made
available to it under their agreement while allowing the
Company a reasonable opportunity to increase the
quantity it has been purchasing from the Commission.
Maintenance and upgrading of public roads
7. (1) The State must maintain or cause to be maintained those public
roads under the control of the Commissioner of Main Roads or a
local government, which may be used by the Company for the
purposes of this Agreement to a standard similar to comparable
public roads maintained by the Commissioner of Main Roads or a
local government as the case may be.
(2) (a) In the event that for or in connection with the Company's
activities hereunder the Company or any person engaged
by the Company uses or wishes to use a public road
(whether referred to in subclause (1) or otherwise) which is
inadequate for the purpose, or any use by the Company or
any person engaged by the Company of any public road
results in excessive damage to or deterioration of such road
(other than fair wear and tear), the Company must pay to
the State or the local authority, as the case may require the
whole or an equitable part of the total cost of any
upgrading required or of making good the damage or
deterioration as may be reasonably required by the
Commissioner of Main Roads, having regard to the use of
such public road by others.
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Schedule 1 Wood Processing (Wesbeam) Agreement
(b) It is declared and agreed for the purposes of this
subclause (2) that the Commission supplying Timber to the
Site for the purposes of the Production Contract or a
Concurrent Contract is not a person engaged by the
Company referred to in paragraph (a) of this subclause (2).
Transport permits
8. (1) Subject to the observance of all statutory requirements by the
Company, the Commission and persons carting Timber to the Site
for the Company or Commission as the case may be, those persons
will be issued with extra-mass and overlength vehicle permits or
notices or both by the Commissioner of Main Roads appropriate to
road transport routes used by the Company, the Commission or
those others persons aforesaid as the case may be and as may be
required to enable the efficient cartage of Timber to the Site.
(2) Subject to the observance of all statutory requirements by the
Company and persons carting Timber Products for the Company
from the Site to a port, railhead or road freight delivery point for
sending out of Western Australia, those persons will be issued with
extra-mass and overlength vehicle permits or notices or both by the
Commissioner of Main Roads appropriate to road transport routes
used by the Company or those persons aforesaid as the case may be
which the Commissioner of Main Roads reasonably determines are
required to enable the efficient cartage of Timber Products from
the Site for the above purpose.
No discriminatory charges
9. Except as provided in this Agreement the State must not impose, nor shall
it permit or authorise any of its agencies or instrumentalities or any local
government or other authority of the State to impose, discriminatory
taxes, rates or charges of any nature whatsoever on or in respect of the
titles, property or other assets, products, materials or services used or
produced by or through the activities of the Company in the conduct of its
business hereunder nor will the State take or permit to be taken by any
such State authority any other discriminatory action which would deprive
the Company of full enjoyment of the rights granted or intended to be
granted under this Agreement.
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Wood Processing (Wesbeam) Agreement Bill 2002
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Zoning
10. (1) The State must ensure after consultation with the relevant local
government that the Site (and the Additional Area while the
Company has the option to purchase it under the Option Deed and
also if it is purchased by the Company as a consequence of the
exercise by the Company of such option) will be and remain zoned
for use or otherwise protected during the currency of this
Agreement so that the activities of the Company hereunder may be
undertaken and carried out thereon without any interference or
interruption by the State or by any State agency or instrumentality
or by any local government or other authority of the State on the
ground that such activities are contrary to zoning by-law,
regulation or order.
(2) The State must ensure that the zoning of the land shown outlined in
blue on the plan marked "A" (excluding the Site and the Additional
Area while the Company has the option to purchase it under the
Option Deed and also if it is purchased by the Company as a
consequence of the exercise by the Company of such option)
attached hereto and initialled by or on behalf of the parties on the
date of this Agreement for the purpose of identification shall not be
changed during the currency of this Agreement to a zoning that is
determined by the Minister for Planning after consultation with the
Minister and the relevant local government to be incompatible with
or likely to restrict or adversely affect the activities of the
Company hereunder.
Submissions on the Company's behalf
11. If the Minister in his or her discretion believes it is reasonable to do so he
or she will at the Company's request make submissions to any relevant
State agency or instrumentality in respect of applications made by the
Company to obtain relief or exemption from specific legislation or
regulations subject to the Company demonstrating to the Minister's
satisfaction that the Company is making all reasonable endeavours to
comply with the legislation or regulations the subject of the applications.
Assignment
12. (1) Subject to the provisions of this clause the Company may at any
time with the consent of the Minister:
(a) assign, mortgage, charge, sublet or dispose of to any
person the whole or any part of the rights of the Company
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Wood Processing (Wesbeam) Agreement Bill 2002
Schedule 1 Wood Processing (Wesbeam) Agreement
hereunder (including its rights to have supplies of Timber
made available to it under the Production Contract or a
Concurrent Contract) and of the obligations of the
Company hereunder or the whole or any part of the rights
of the Company under the Contract of Sale or the Option
Deed; or
(b) allow the Site to be used wholly or in part for purposes
other than the activities of the Company under this
Agreement,
subject however in the case of an assignment, subletting or
disposition to the assignee, sublessee or disponee (as the case may
be) executing in favour of the State (unless the Minister otherwise
determines) a deed of covenant in a form to be approved by the
Minister to comply with observe and perform the provisions hereof
on the part of the Company to be complied with, observed or
performed in regard to the matter or matters the subject of such
assignment, subletting or disposition.
(2) Notwithstanding anything contained in or anything done under or
pursuant to subclause (1) the Company will at all times during the
currency of this Agreement be and remain liable for the due and
punctual performance and observance of all the covenants and
agreements on its part contained in this Agreement PROVIDED
THAT the Minister may agree to release the Company from such
liability where the Minister considers such release will not be
contrary to the interests of the State.
Variation
13. (1) The parties to this Agreement may from time to time by agreement
in writing add to, substitute for, cancel or vary all or any of the
provisions of this Agreement for the purpose of more efficiently or
satisfactorily implementing or facilitating any of the objects of this
Agreement.
(2) The Minister must cause any agreement made pursuant to
subclause (1) to be laid on the Table of each House of Parliament
within 12 sitting days next following its execution.
(3) Either House may, within 12 sitting days of that House after the
agreement has been laid before it, pass a resolution disallowing the
page 24
Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
agreement, but if after the last day on which the agreement might
have been disallowed neither House has passed such a resolution
the agreement shall have effect from and after that last day.
Force majeure
14. This Agreement shall be deemed to be made subject to any delays in the
performance of the obligations under this Agreement (other than the
obligations of the Company under clause 4(1)) and to the temporary
suspension of continuing obligations under this Agreement that may be
caused by or arise from circumstances beyond the power and control of
the party responsible for the performance of those obligations including
(without limiting the generality of the foregoing) delays or any such
temporary suspension as aforesaid caused by or arising from act of God,
force majeure, earthquakes, floods, storms, tempest, washaways, fire
(unless caused by the actual fault or privity of the party responsible for
such performance) act of war, act of public enemies, riots, civil
commotions, strikes, lockouts, stoppages, restraint of labour or other
similar acts (whether partial or general), acts or omissions of the
Commonwealth, shortages of labour or essential materials, reasonable
failure to secure contractors, delays of contractors, inability (common in
the Timber Products industry) to sell profitably Timber Products, factors
due to overall world economic conditions or factors due to action taken
by or on behalf of any government or governmental authority (other than
the State or any authority of the State) or factors that could not reasonably
have been foreseen PROVIDED ALWAYS that the party whose
performance of obligations is affected by any of the said causes must
promptly give notice to the other party or parties of the event or events
and shall use its best endeavours to minimise the effects of such causes as
soon as possible after the occurrence.
Power to extend periods
15. Notwithstanding any provision of this Agreement, the Minister may at the
request of the Company from time to time extend or further extend any
period or vary or further vary any date referred to in this Agreement for
such period or to such later date as the Minister thinks fit, whether or not
the period to be extended has expired or the date to be varied has passed.
page 25
Wood Processing (Wesbeam) Agreement Bill 2002
Schedule 1 Wood Processing (Wesbeam) Agreement
Determination of Agreement
16. (1) If:
(a) (i) the Company makes default which the State
considers material in the due performance or
observance of any of the covenants or obligations of
the Company in this Agreement or in the Production
Contract or in a Concurrent Contract; or
(ii) the Company abandons or repudiates this Agreement
or the Production Contract or a Concurrent Contract
or abandons or repudiates its activities under this
Agreement or under the Production Contract or
under a Concurrent Contract,
and such matter is not remedied within a period of
180 days after notice is given by the State as provided in
subclause (2) or if the matter is referred to arbitration, then
within the period mentioned in subclause (3); or
(b) the Company goes into liquidation (other than a voluntary
liquidation for the purpose of reconstruction) and unless
within 3 months from the date of such liquidation the
interest of the Company is assigned to an assignee
approved by the Minister under clause 12; or
(c) the Company does not complete its purchase of the Site
under the Contract of Sale; or
(d) the Production Contract or a Concurrent Contract is
terminated by the Commission in accordance with its
provisions before its agreed expiration date; or
(e) the Company allows the Site to be used wholly or in part
other than for the purpose of the Company's activities
under this Agreement without the consent of the Minister
under clause 12; or
(f) the Company at any time ceases to operate the Plant for a
continuous period of more than 12 months without the
consent of the Minister,
the State may by notice to the Company determine this Agreement.
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
(2) The notice to be given by the State to the Company in terms of
subclause (1)(a) must specify the nature of the default or other
ground so entitling the State to exercise such right of
determination.
(3) (a) If the Company contests the alleged default or other ground
referred to in subclause (1)(a) the Company shall within
60 days after notice given by the State as provided in
subclause (2) refer the matter in dispute to arbitration.
(b) If the question is decided against the Company, the
Company must comply with the arbitration award within a
reasonable time to be fixed by that award PROVIDED
THAT if the arbitrator finds that there was a bona fide
dispute and that the Company was not dilatory in pursuing
the arbitration, the time for compliance with the arbitration
award shall not be less than 90 days from the date of such
award.
(4) If the default referred to in subclause (1)(a) has not been remedied
within a period of 180 days after receipt of the notice referred to in
that subclause or within the time fixed by the arbitration award as
aforesaid the State instead of determining this Agreement as
aforesaid because of such default may itself remedy such default or
cause the same to be remedied (for which purpose the State by
agents workmen or otherwise shall have full power to enter upon
lands occupied by the Company and to make use of all plant,
machinery, equipment and installations thereon) and the actual
costs and expenses incurred by the State in remedying or causing
to be remedied such default shall be a debt payable by the
Company to the State on demand.
Effect of cessation or determination of Agreement
17. On the cessation or determination of this Agreement:
(a) except as otherwise agreed by the Minister the rights of the
Company to, in or under this Agreement shall thereupon cease and
determine but without prejudice to the liability of any of the parties
hereto in respect of any antecedent breach or default under this
Agreement or in respect of any guarantee or indemnity given under
this Agreement;
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Wood Processing (Wesbeam) Agreement Bill 2002
Schedule 1 Wood Processing (Wesbeam) Agreement
(b) the Company and the Guarantor shall forthwith pay to the State all
money which may then have become payable or accrued due; and
(c) save as aforesaid and as otherwise provided in this Agreement or in
the Contract of Sale or Option Deed or in the Production Contract
or a Concurrent Contract none of the parties shall have any claim
against the other of them with respect to any matter or thing in or
arising out of this Agreement.
Indemnity
18. The Company must indemnify and keep indemnified the State and its
servants agents and contractors in respect of all actions suits claims
demands or costs of third parties arising out of or in connection with any
work carried out by or on behalf of the Company pursuant to this
Agreement or relating to its activities hereunder or arising out of or in
connection with the construction maintenance or use by the Company or
its servants agents contractors or assignees of the Company's works or
services the subject of this Agreement or the plant apparatus or
equipment installed in connection therewith PROVIDED THAT subject
to the provisions of any relevant Act such indemnity will not apply in
circumstances where the State, its servants, agents, or contractors are
negligent in carrying out work for the Company pursuant to this
Agreement.
Subcontracting
19. Without affecting the liabilities of the parties under this Agreement both
the State and the Company will have the right from time to time to entrust
to third parties the carrying out of any portions of the activities which it is
authorised or obliged to carry out hereunder.
Arbitration
20. (1) Any dispute or difference between the State and the Company
arising out of or in connection with this Agreement, the
construction of this Agreement or as to the rights duties or
liabilities of either of them under this Agreement or as to any
matter to be agreed upon between them under this Agreement
must, in default of agreement between them and in the absence of
any provision in this Agreement to the contrary, be referred to and
settled by arbitration under the provisions of the Commercial
Arbitration Act 1985 and each party may be represented before the
page 28
Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
arbitrator by a duly qualified legal practitioner or other
representative.
(2) Except where otherwise provided in this Agreement, the provisions
of this clause will not apply to any case where the State, the
Minister or any other Minister in the Government of the State is by
this Agreement given either expressly or impliedly a discretionary
power.
(3) The arbitrator of any submission to arbitration under this
Agreement is hereby empowered upon the application of either the
State or the Company, to grant in the name of the Minister any
interim extension of any period or variation of any date referred to
herein which having regard to the circumstances may reasonably
be required in order to preserve the rights of that party or of the
parties to the arbitration and an award may in the name of the
Minister grant any further extension or variation for that purpose.
Consultation
21. (1) The Company must during the currency of this Agreement consult
with and keep the State fully informed on a confidential basis
concerning any action that the Company proposes to take with any
third party (including the Commonwealth or any Commonwealth
constituted agency, authority, instrumentality or other body) which
might significantly affect the overall interest of the State under this
Agreement.
(2) During the currency of this Agreement the Company will notify the
Minister of any non-compliance by the Commission with clause 10
of the Production Contract that the Company considers may have
occurred as soon as practicable after the Company becomes aware
of it.
Notices
22. Any notice consent or other writing authorised or required by this
Agreement to be given or sent by the State to the Company or to the
Guarantor will be deemed to have been duly given or sent if signed by the
Minister or by any senior officer of the Public Service of the State acting
by the direction of the Minister and forwarded by prepaid post or handed
to the Company or to the Guarantor as the case may be at its address
hereinbefore set forth or other address in Western Australia nominated by
page 29
Wood Processing (Wesbeam) Agreement Bill 2002
Schedule 1 Wood Processing (Wesbeam) Agreement
the Company, or by the Guarantor as the case may be, to the Minister and
by the Company or by the Guarantor to the State if signed on its behalf by
any person or persons authorised by the Company or by its solicitors, or
by the Guarantor or by its solicitors as the case may be, as notified to the
State from time to time and forwarded by prepaid post or handed to the
Minister and except in the case of personal service any such notice
consent or writing shall be deemed to have been duly given or sent on the
day on which it would be delivered in the ordinary course of post.
Guarantee of the Company's performance
23. Notwithstanding any addition to or deletion or variation of the provisions
of this Agreement or any time or other indulgence granted by the State or
by the Minister to the Company whether or not notice thereof is given to
the Guarantor by the State, the Guarantor hereby guarantees to the State
the due performance by the Company of all of the Company's obligations
to be performed hereunder and under the Contract of Sale, the Production
Contract and all Concurrent Contracts.
Term of Agreement
24. (1) Unless sooner determined in accordance with the provisions hereof
this Agreement will expire on 30 June 2029.
(2) The parties will confer 10 years after ratification of this Agreement
and 10 years thereafter on the Company's intentions with respect to
the continuance of the Plant's operations and the Company's likely
Timber requirements for the Plant.
New agreement with the State
25. (1) Provided that the Company is not then in default under this
Agreement or under the Production Contract or under a Concurrent
Contract and the State is reasonably satisfied that a further
agreement with the State is required to assure to the Company the
supply to the Company of Timber to be supplied to the Company
during the Further Term in accordance with clause 6, the State will
not later than 18 months prior to the expiration of the Term enter
into negotiations with the Company for that purpose.
(2) If a new agreement with the State is entered into the State must
when it is entered into introduce and sponsor a Bill in the
Parliament of the State of Western Australia to ratify the execution
on behalf of the State of the new agreement.
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
Stamp duty
26. The State will exempt:
(a) this Agreement; and
(b) the Contract of Sale; and
(c) the Production Contract; and
(d) Concurrent Contracts entered into within 2 years after the
Commencement Date,
from stamp duty which, but for the operation of this clause, would or
might be assessed as chargeable on them provided that this clause shall
not apply to any liability to stamp duty arising under the Production
Contract or a Concurrent Contract more than 2 years after the
Commencement Date.
Applicable law
27. This Agreement is to be interpreted according to the law for the time
being in force in the State of Western Australia.
IN WITNESS WHEREOF this Agreement has been executed by or on
behalf of the parties hereto the day and year first hereinbefore mentioned.
SIGNED by the HONOURABLE }
DR. GEOFFREY IAN GALLOP } GEOFF GALLOP
in the presence of: }
CLIVE BROWN
Name:
page 31
Wood Processing (Wesbeam) Agreement Bill 2002
Schedule 1 Wood Processing (Wesbeam) Agreement
THE COMMON SEAL of }
WESBEAM PTY LTD }
ACN 004 268 017 was hereunto } [CS]
affixed in accordance with its }
constitution in the presence of: }
Director: DENIS CULLITY
Name:
Director/Secretary: J MALONE
Name:
THE COMMON SEAL of }
WESBEAM HOLDINGS } [CS]
LIMITED ACN 095 594 826 was }
hereunto affixed in accordance }
with its constitution in the }
presence of: }
Director: DENIS CULLITY
Name:
Director/Secretary: J MALONE
Name:
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Wood Processing (Wesbeam) Agreement Bill 2002
Wood Processing (Wesbeam) Agreement Schedule 1
"A"
page 33
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