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by virtue of any such lease or license as aforesaid shall, notwithstanding such surrender, be deemed to be reserved to the company in so far as may be necessary to enable the company to cut, float, and remove timber upon any land which shall not then have been surrendered by it, and to float and remove any such timber therefrom upon, over, and by means of the land so surrendered as fully and effectually as the company could lawfully do by virtue of any such lease or license as aforesaid immediately prior to the making of and every such surrender. 7. All mining claims and other mining privileges granted by the Warden under the aforesaid section 53 in respect of any surrendered land shall be granted subject to the express conditions to be indorsed on any license issued by the Warden, that the company shall not be liable for damage of any kind that may be caused to the owner of any such claim or mining privilege in the reasonable exercise by the company of such reserved rights : And also that in every case where such reserved rights include the right to stop, dam, divert, or use water or water-channels, such right shall, when required to be exercised for the purpose of floating and removing timber as aforesaid, be exercisable in priority to any water rights granted under the aforesaid section 53 to the owner of any claim or mining privilege : And also that if the licensee diverts any water from any stream to which such priority applies he shall erect and maintain at the point of diversion such wingdam or other construction or contrivance as will enable the company by means thereof to stop such diversion whenever it requires the water. 8. In every case where the land to be surrendered is less than the whole of the lands comprised in the lease or license, the following special provisions shall apply:— (a.) The expenses of any survey that may be necessary for the purposes of the surrender shall be borne by Her Majesty. (b.) In order to lessen the risk of damage by fire or otherwise to the timber on the land that is not to be surrendered, the boundaries of the land to be surrendered shall be so adjusted as to leave a sufficient belt of timberless land not exceeding twenty chains in width unsurrendered. (c.) A duly proportionate abatement of the rent (if any) payable in respect of.the unsurrendered land shall be made for the residue of the term of the lease or license. In witness whereof these presents have been executed by or on behalf of the parties hereto the day and year first hereinbefore written. The common seal of the Kauri Timber Company (Limited) was affixed hereto by order of the board of directors thereof, in the presence of— Geo. Lush, } -.. „ , , „ , T ci r Directors. (L.s.) John Sharp, j v ' Thos. D. Howell, Secretary, Kauri Timber Company (Limited), 17, Queen Street, Melbourne. The Trustees, Executors, and Agency Company (Limited), of No. 412, Collins Street, Melbourne, as mortgagee, hereby consents to the above-written deed, subject to payment to it of all moneys payable in respect of any claim for compensation to which the Kauri Timber Company (Limited) is entitled, and to security being given to it over any land taken in lieu of any such moneys ; and, subject as aforesaid, agrees to consent to the arrangements contemplated or provided for by the said deed, and from time to time, at the request of either of the parties to the said deed, and at the cost of the said company, to execute such instrument of consent or other assurance in the premises as either of the said parties requires. Dated this 21st day of May, 1897. The seal of the Trustees, Executors, and Agency Company (Limited) was hereto affixed by us, two of the directors of the said company,— J. M. wT™') DirectOTB ' ( L ' s -) in the presence of— Jas. Borrowman, Manager, and of— Thos. D. Howell, Company Secretary, 17, Queen Street, Melbourne. Approximate Cost of Paper.— Preparation, not given ; printing (1,250 copies), £1 ss.

By Authority: John Mackay, Government Printer, Wellington.—lB97. Price 3d,]

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