Paper Mill Agreement Act 1960

That prior to the end of the year one thousand nine hundred and sixty‑six the Company will construct establish and put into commercial production on the mill site at a capital cost of not less than TWO MILLION FIVE HUNDRED THOUSAND POUNDS (£2,500,000) (including the cost of acquisition of the mill site) an industrial mill capable when working 8,000 hours per annum of producing initially fifteen thousand (15,000) tons or thereabouts a year of paper and paper board. The mill shall be so constructed as to be capable of expansion.

That as long as any moneys are owing by the Company to the state under the provisions hereof or of the mortgage referred to in clause 3 hereof the Company will maintain the mill and the plant thereof in good and serviceable condition and running order.

To give notice in writing to the State of the date of commencement within one (1) month of such date.

Subject to subclause (b) of this clause the State will make advances to the Company by way of loan of two‑thirds of the cost of the mill as incurred and paid by the Company up to the 31st day of December 1967 including costs incurred prior to the date of this agreement. The State will have no responsibility or liability in regard to other or additional costs incurred by the Company.

The total amount to the advanced by the State under this agreement will not exceed two‑thirds of the cost of the mill as incurred and paid by the Company up to the 31st day of December 1967 or two million five hundred thousand pounds (£2,500,000) whichever is the lesser amount. The State shall not be required to advance in any one financial year a total sum exceeding three hundred thousand pounds (£300,000) but the State may in any such year advance a greater total sum if it so desires not exceeding without the consent of the Company two‑thirds of the total of the amounts shown in the certificates referred to in the next succeeding paragraph.

Advances will be made progressively at quarterly intervals on the certificate of the Engineer in charge of the works given in respect of the expenditure on the mill and the mill site verified by the Company’s auditors and accepted by the State and subject to the provisions of subclause (b) of this clause the State will advance only two‑thirds of the amount shown in any such certificate. Before accepting any such certificate the State may enter upon the mill site and inspect all or any works thereon and the Company will afford to the State all reasonable assistance and facilities for the purposes of the inspection.

The Company will pay to the State interest on the amount of each advance at the rate of five (5) per centum per annum calculated from the date of the advance in accordance with the provisions of the mortgage hereinafter in this clause referred to.

In the event of the expenditure on the cost of the mill incurred by the Company in any financial year exceeding a total of four hundred and fifty thousand pounds (£450,000) the State will pay interest to the Company on two‑thirds of the amount of such excess expenditure as verified by the Company’s auditors and accepted by the State at a rate equal to the difference between the Company’s bank overdraft rate (if such rate exceeds five (5) per centum per annum) and the rate of five (5) per centum per annum payable by the Company to the State under the mortgage. The liability of the State for interest shall cease as soon as the total amount advanced by it equals two million five hundred thousand pounds (£2,500,000) or two‑thirds of the amount expended by the Company on the cost of the mill whichever is the lesser amount.

The Company will repay the principal moneys comprised in any advance by equal annual payments over a period of fifteen (15) years commencing from 31st day of December 1980.

The Company shall have the right at any time subject to giving three months’ notice in writing to the Minister to repay the whole of the principal moneys or the sum of ten thousand pounds (£10,000) or any multiple thereof in reduction of the principal moneys with interest to the date of such payment. Upon payment to the State of the whole of the principal moneys interest and other moneys secured by the mortgage the State shall execute and deliver to the Company a registerable discharge of the mortgage. Such discharge shall not affect the rights or obligations of the State or of the Company in other respects under this agreement.

Forthwith after notice in writing is given to the Company of the passing of the ratifying Act the Company will execute in favour of the State a registerable first mortgage free from all prior encumbrances in a form already approved by the parties hereto and initialled by them or on their behalf for the purposes of identification over the whole of the land comprised within the mill site and will do all things necessary or expedient to enable the State to effect the due registration of the mortgage. Where and as often as the Company acquires additional land adjoining the mill site as it exists at the date hereof the Company will forthwith give to the State notice in writing of the acquisition and thereafter if and when so required in writing by the state will execute in favour of the state a registerable first mortgage free from all prior encumbrances in a form similar to the form first mentioned in this subclause over the whole of the additional land and will do all things necessary or expedient to enable the state to effect the due registration of the mortgage.

If at any time after the registration of any of the said mortgages the Company should give to the State notice in writing of its desire to sell or lease or for the purposes of expansion to obtain the release from any such mortgage of portion of the land comprised within the mill site not being a portion upon which the mill or any part thereof is or is proposed to be erected and not being a portion which is reasonably required for or in respect of the efficient operation of the mill and the disposal of the effluent on the mill site the state will at the request and cost of the Company and subject to the Company’s arranging for and registering any necessary subdivisional plan or diagram execute and hand to the Company a registerable discharge of the mortgage in respect of that portion.

The Company agrees that in connection with its construction and establishment of the mill it will fully investigate the availability in the said State of suitable materials and equipment (other than major items of paper‑making machinery) and will utilise them wherever it considers it can and should.

THE State will upon two (2) months’ prior notice in writing in that behalf given to it by the Company make available to a point on the boundary of the mill site to be mutually agreed by the parties such quantity of potable water as will meet the said estimated requirements of the Company for construction purposes under this agreement and the State will upon twelve (12) months’ prior notice in writing in that behalf given to it by the Company and not earlier than twenty‑four (24) months before the estimated date of commencement make available to a point on the boundary of the mill site to be mutually agreed by the parties such quantities of potable water as will meet the estimated requirements of the Company during the first ten (10) to fifteen (15) years following the date of commencement up to a maximum of 50,000 gallons per hour. The State anticipates that it will also be able to meet the estimated ultimate requirements of the Company in regard to the supply of water and upon the Company giving to the State at least twelve (12) months’ notice in writing in that behalf the State will use all reasonable endeavours to supply such further quantities of potable water as may be reasonably required by the Company for further development of the Company’s operations on the mill site up to a total maximum of 125,000 gallons per hour.

THE State agrees that the Company may sink on the mill site such wells and bores into the sub‑soil as the Company thinks fit to a depth not exceeding Reduced Level Low Water Mark Fremantle of minus 500 feet for the purpose of supplying water for use by the Company for the purposes of the mill and the water so obtained and used will not be the subject of the charge by the State. The Company will on request by the State from time to time give to the State particulars of the number and kind of wells and bores sunk by it and the quantities and quality of water obtained therefrom.

THE price to be paid for water (other than water obtained by the Company from its own wells or bores sunk into the sub‑soil of the mill site and used for the purposes of the mill) shall be at the rate ruling from time to time for excess water supplied for industrial purposes by the Metropolitan Water Supply Sewerage and Drainage Department pursuant to the provisions of the Metropolitan Water Supply Sewerage and Drainage Act 1909‑1956 and its amendments.

THE Company shall so far as it is practicable for the Company to do so recirculate on the mill site the water used for cooling purposes thereon.

THE Company may at any time give to the State two years’ notice in writing of its intention to discharge the excess effluent from the mill site and thereafter may at any time and from time to time give to the State reasonable notice of its intention to increase the quantity or to vary the quality of the excess effluent. The Company shall in each notice disclose the nature quantity and quality of the excess effluent and the maximum rate of its discharge from the mill site expressed in gallons per hour. The Company agrees that all excess effluent which shall be discharged from the mill site at any time shall as from the date of the expiration of the last notice given by it under this subclause substantially accord with the particulars given in that notice.

THE Company undertakes that in the event of its establishing on the mill site a pulp mill or pulp mills the total daily discharge of excess effluent from such pulp mill or pulp mills shall not contain more than one hundred and ten thousand (110,000) pounds of total solids and more than thirty thousand (30,000) pounds of biochemical oxygen demand.

Subject to the performance by the Company of its obligations under this clause the State shall as soon as it reasonably can but not later than two years after its receipt of the notice first referred to in subclause (b) of this clause accept full responsibility for the disposal of the excess effluent referred to in that notice and where a further notice is given under that subclause the state shall as from the expiration of a reasonable period after its receipt of that further notice accept full responsibility for the discharge of the excess effluent referred to therein. The State may further treat at a sewage treatment works but shall dispose of all the excess effluent by such means and routes as the State thinks fit but the Company will have the right to be and to be kept advised of the intentions and operations of the State under this subclause and the costs involved and to make suggestions which shall be considered by the State.

THE Company shall at its own expense provide instal operate and maintain on the mill site adequate pumping plant equipment and facilities necessary to ensure the efficient pumping of all excess effluent at a steady flow for a distance of at least six miles through a pipeline or pipe lines to be laid by the State from a discharge point on the boundary of the mill site to be mutually agreed upon.

THE State may at any time and from time to time enter upon the mill site and inspect any effluent or excess effluent therein or therefrom and take samples thereof for the purposes of analysis test or experiment.

THE Company will on demand pay to the State annually a charge in respect of the treatment and discharge of the excess effluent which charge will be reasonable having regard to the costs incurred including interest at five pounds (£5) per centum per annum on the capital expenditure depreciation maintenance and operating costs and a reasonable charge for overhead and administrative costs but the total charges shall not exceed in the case of excess effluent from the paper mill one half of the price of water as specified in subclause 4(d) and in the case of excess effluent from a pulp mill the full price of water as specified in subclause 4(d).

THE State will within six (6) months from the passing of the ratifying Act provide at the boundary of the mill site electric power in such quantities and under such conditions as shall be mutually agreed for construction purposes and the State will upon twelve (12) months’ prior notice in writing in that behalf given to it by the Company and not earlier than twenty‑four (24) months before the estimated date of commencement make available to a point on the boundary of the mill site to be mutually agreed by the parties electric power in such manner and quantities as will meet the estimated requirements of the Company during the first ten (10) to fifteen (15) years following the date of commencement up to a maximum of 4,500 kilowatts. The State anticipates that it will also be able to meet the estimated ultimate requirements of the Company in regard to the supply of electric power and upon the Company giving to the State at least twelve (12) months’ notice in writing in that behalf the State will use all reasonable endeavours to supply such further quantities of electric power as may be reasonably required by the Company for the further development of the Company’s operations on the mill site. The costs of electric power supplied by the State shall be in accordance with the industrial schedule rates of the State Electricity Commission of Western Australia from time to time prevailing in the metropolitan area of the said State or at such special rates as may be negotiated from time to time by the Company with the Commission.

THE Company will from time to time during the currency of this agreement give notice in writing to the State Electricity Commission of Western Australia of the maximum load of electricity which the Company will require at any one time. Subject to subclause (b) of this clause the Commission shall supply the maximum load of electricity required by the Company and the Company shall not exceed such maximum load without reasonable prior notice in writing to the Commission.

IN the event of the Company erecting its own electric power plant the State agrees that such plant may be operated in parallel with the grid of the State Electricity Commission and may feed back power thereto and the Company shall be at liberty to supply electric power generated by such plant to wholly‑owned subsidiary companies established on the mill site.

THE Company for its part shall carry on its operations in accordance with the accepted standards of the industry from time to time and so as to avoid to a reasonable extent the creation of noise dust or odour.

IN the event of the standardisation of railway gauges in the area of the mill site the connection of the mill site to the standard gauge railway will be effected by the State under such conditions as may be generally applicable to siding holders at the time of the said connection.