{"id":"forests-wood-pulp-agreement-act-1996","name":"Forests (Wood Pulp Agreement) Act 1996","slug":"forests-wood-pulp-agreement-act-1996","collection":"act","jurisdiction":"vic","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":178166,"registerId":"vic-forests-wood-pulp-agreement-act-1996-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Forests (Wood Pulp Agreement) Act 1996","content":"Victorian Legislation and Parliamentary Documentsi\nVersion No. 001\nForests (Wood Pulp Agreement) Act 1996\nAct No. 16/1996\nVersion as at 30 March 1998\nTABLE OF PROVISIONS\nSection Page\n1. Purpose 1\n2. Commencement 1\n3. Definition 1\n4. Act to bind the Crown 2\n5. Ratification of Agreement 2\n6. Waiver of licence fees 2\n7. Amendment or termination of Agreement 2\n8. Repeal 2\n__________________\nSCHEDULE—Amcor Agreement 3\n═══════════════\nENDNOTES 30\n1. General Information 30\n2. Table of Amendments 31\n3. Explanatory Details 32\n\nVictorian Legislation and Parliamentary Documents1\nVersion No. 001\nForests (Wood Pulp Agreement) Act 1996\nAct No. 16/1996\nVersion as at 30 March 1998\nPreamble\nAn Agreement with respect to the supply of pulp\nwood for the purposes of manufacturing wood pulp\nwas entered into on 24 May 1996 between the\nHonourable Marie Tehan, Minister for\nConservation and Land Management for and on\nbehalf of the State of Victoria and AMCOR\nLimited A.C.N. 000 017 372.\nThe Agreement provides that it is of no force or\neffect until ratified and otherwise given effect by\nAct.\nIt is expedient to ratify the Agreement.\nThe Parliament of Victoria therefore enacts as follows:\n1. Purpose\nThe purpose of this Act is to ratify an Agreement\nbetween the Minister administering the Forests\nAct 1958 and AMCOR Limited with respect to\nthe supply of pulpwood for the manufacture of\nwood pulp and for other purposes.\n2. Commencement\nThis Act comes into operation on the day on\nwhich it receives the Royal Assent.\n3. Definition\nIn this Act, \"Agreement\" means the agreement a\ncopy of which is set out in the Schedule.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n2\n4. Act to bind the Crown\nThis Act binds the Crown.\n5. Ratification of Agreement\n(1) The Agreement is ratified and takes effect as if its\nprovisions had been expressly enacted in this Act.\n(2) The Secretary to the Department of Natural\nResources and Environment is empowered to\ncarry out the Agreement.\n6. Waiver of licence fees\nA licence fee may be waived in whole or in part in\naccordance with the Agreement despite anything\nto the contrary in the Forests Act 1958 or\nregulations under that Act.\n7. Amendment or termination of Agreement\nIf the Agreement is amended or terminated in\naccordance with its provisions, the Minister must\ncause a report giving details of the amendment or\ntermination to be laid before each House of the\nParliament before the expiration of the 14th sitting\nday of that House after the Agreement is amended\nor terminated.\n8. Repeal\nThe Forests (Wood Pulp Agreement) Act 1961\nis repealed.\n__________________\ns. 4\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n3\nSCHEDULE\nAMCOR AGREEMENT\nTHIS AGREEMENT is made the 24th day of May One thousand nine\nhundred and ninety-six between the Honourable Marie Therese Tehan as\nMinister for Conservation and Land Management for and on behalf of the\nState of Victoria administering the Forests Act 1958 (the \"Minister\") of the\nfirst part and AMCOR LIMITED (ACN 000 017 372) (the \"Company\") a\ncompany incorporated in the State of New South Wales whose head office is\nsituate at Southgate, South Melbourne in the State of Victoria of the second\npart—\nRECITALS\nWHEREAS:\nI. On the twenty-eighth day of March One thousand nine hundred\nand sixty-one the Honourable Alexander John Fraser in his\ncapacity as the Minister for Forests and Australian Paper\nManufacturers Limited, as the Company was formerly called,\nentered into an agreement (hereinafter called the \"original\nagreement\") which was ratified, validated and approved by an Act\nof Parliament of the State of Victoria known as the Forests (Wood\nPulp Agreement) Act 1961.\nII. The original agreement has been amended by other agreements\nmade between Ministers of the Crown and the Company which\nwere ratified validated and approved by the Parliament of the State\nof Victoria by the Forests (Wood Pulp Agreement) Act 1966, the\nForests (Wood Pulp Agreements) Act 1974 and the Forests (Wood\nPulp Agreement) Act 1984.\nIII. The Minister and the Company desire to consolidate into one\nagreement the original agreement as previously amended and\nfurther amendments to the original agreement as previously\namended agreed by the Minister and the Company.\nIV. The Company has been engaged in large scale operations in\nconnection with the manufacture of wood pulp and has established\na large paper making industry and the ancillary activities of\nchemical manufacture and forestry in the State of Victoria.\nV. The Company is a major contributor to the Australian economy\nand the national timber industry has benefited significantly from\nvalue adding and other initiatives of the Company.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n4\nVI. Having regard to the matters hereinbefore recited the parties hereto\ndesire to enter into the following agreement so that upon its\nratification by the Parliament of the State of Victoria the\nCompany and the State of Victoria shall become bound by the\nprovisions hereinafter appearing.\nNOW IT IS HEREBY AGREED as follows:-\nPART I - PRELIMINARY\n1. In this Agreement unless inconsistent with the context or subject\nmatter -\n\"the Act\" means the Act of the Parliament of the State of Victoria\nby which this Agreement is ratified.\n\"the Agreement\" includes this Agreement as from time to time\namended.\n\"any Act\" means any Act of the Parliament of the State of\nVictoria.\n\"authorised officer\" has the same meaning as in the Conservation,\nForests and Lands Act.\n\"Company\" means AMCOR Limited (ACN 000 017 372) and if in\naccordance with clause 5 of this Agreement a subsidiary company\nis incorporated or the rights of the Company are assigned to any\ncompany includes that subsidiary or assignee company.\n\"Commercial Arbitration Act\" means the Commercial Arbitration\nAct 1984 of the State of Victoria as amended from time to time.\n\"Conservation Forests and Lands Act\" means the Conservation\nForests and Lands Act 1987 of the State of Victoria as amended\nfrom time to time.\n\"date of expiration\" means the thirtieth day of June in the year\nTwo thousand and thirty.\n\"Department\" means the Department of Natural Resources and\nEnvironment and any successor department.\n\"Forests Act\" means the Forests Act 1958 of the State of Victoria\nas amended from time to time.\n\"Forest Area\" means State forest existing from time to time within\nthe area surrounded by a green verge on the map annexed hereto or\nif that area is varied in accordance with clause 15 hereof that area\nas so varied.\n\"forest of regrowth\" means any forest in which the majority of the\ntrees are less than sixty years of age.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n5\n\"forest produce\" has the same meaning as in the Forests Act.\n\"the industry\" means\n(a) the manufacture by the Company in the State of\nVictoria of wood pulp from pulpwood;\n(b) investigations preliminary to and in connection with\nsuch manufacture and the supply and preparation of\nmaterials therefor; and\n(c) the carrying on of processes incidental to such\nmanufacture.\n\"Land Act\" means the Land Act 1958 of the State of Victoria as\namended from time to time.\n\"mill waste\" means edgings and other waste timber cut from logs\nin the course of sawmilling.\n\"minimum annual supply of pulpwood\" means the annual\nquantities of pulpwood of various types which the Secretary is\nbound to make available or the Department is bound to deliver\nfrom time to time in accordance with clause 14 hereof.\n\"Minister\" means the responsible Minister of the Crown for the\ntime being administering the Forests Act.\n\"month\" means calendar month.\n\"mountain forest\" means any eucalypt forest in which the\npredominating species is Eucalyptus regnans or Eucalyptus\ndelegatensis or both of them.\n\"original agreement\" means the agreement defined in the Forests\n(Wood Pulp Agreement) Act 1961 of the State of Victoria as\namended from time to time.\n\"Plan of Utilization\" means any plan of utilization prepared in\naccordance with clause 13 as modified from time to time in\naccordance with this Agreement.\n\"pulpwood\" means sound wood free from bark rot carroty heart\nand all other defects that make wood unsuitable for use in making\nwood pulp and obtained from any species of the genus Eucalyptus\nfrom which the Company is able to make wood pulp of\nmerchantable quality.\n\"pulpwood timber\" means timber in the log or sawn or split that\nconsists exclusively of pulpwood or contains pulpwood but does\nnot include any timber which the Secretary requires for disposal\nwhether by sale or under a lease licence permit or other authority\nfor sawmilling or fencing timber.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n6\n\"removed\" used in relation to pulpwood timber means taken from\nthe stump (or other place in the forest where the pulpwood timber\nis lying) to a place where it can be loaded on a vehicle in working\norder and \"removal\" has a corresponding meaning.\n\"sawmilling\" includes the obtaining of logs or timber for sawing\nveneering or slicing or splitting by hand or machine or for use as\npiles or poles or for hewing for engineering construction or public\nworks.\n\"Secretary\" means the Secretary to the Department.\n\"State forest\" has the same meaning as in the Forests Act.\n\"Trade Measurements Act\" means the Trade Measurements Act\n1995 of the State of Victoria as amended from time to time.\n\"Water Act\" means the Water Act 1989 of the State of Victoria as\namended from time to time.\n\"wood pulp\" means pulp produced from pulpwood by any process\nwhether chemical or mechanical or by a combination of chemical\nand mechanical processes.\n\"year\" means a period of twelve months commencing on the first\nday of July.\n2. (1) In this Agreement unless inconsistent with the context or subject-\nmatter references to any Act shall include all amendments and re-\nenactments thereof for the time being in force and all supplemental\nlegislation for the time being in force whether by regulation rule\nproclamation or order made or continuing under that Act or any\namendment or re-enactment thereof.\n(2) The headings and sidenotes shall not affect the interpretation of\nthis Agreement.\n3. This Agreement shall not be of any force or effect until it has been\nratified and otherwise given effect by the Act.\n4. (1) Upon the date of commencement of the Act this Agreement shall\nbe deemed to have come into operation on 1st July 1996 and the\nprovisions of the original agreement shall be deemed to have\nceased to have any effect from 1st July 1996 subject to\nClause 4(2).\n(2) The cessation of the effect of the provisions of the original\nagreement shall not affect the enforcement of any right obligation\nor liability acquired accrued or incurred thereunder before 1st July\n1996.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n7\n5. (1) The Company shall be at liberty at any time with the prior written\nconsent of the Minister to -\n(a) procure the incorporation of a subsidiary company to\nexercise as the nominee of the Company all or any of its\nrights under this Agreement and the Act; and\n(b) assign all or any of its rights under this Agreement and\nthe Act to such subsidiary company or to any other\ncompany.\n(2) After any such assignment and after written notice thereof given\nby the Company to the Minister the following provisions shall\nhave effect -\n(a) the subsidiary or assignee company shall by virtue of\nthe assignment and the Act be subject to the relevant\nobligations and conditions imposed upon the Company\nby this Agreement so far as they remain in force and\ncapable of taking effect; and\n(b) the Company shall remain responsible to the Minister\nand the Secretary for the performance of all its\nobligations under this Agreement as if no assignment\nhad been made.\n6. In using its powers and applying its discretions whether under this\nAgreement or the Act or the Forests Act the Minister and the\nSecretary shall give full recognition to the fact that the Company is\nengaged in a competitive business and so far as the interests of\nforest management allow the Secretary (which shall for the\npurposes of this Agreement be the sole judge of what is proper\nforest management) shall so act in every reasonable way as to\nenable the Company to carry on the industry in an economic\nmanner.\nPART II - OPERATION OF INDUSTRY\nDIVISION A. - DURATION OF AGREEMENT\n7. This Agreement shall remain in force until the date of expiration or\nuntil sooner determined in accordance with the provisions hereof\nand thereupon the rights interests powers and privileges granted by\nor under this Agreement to the Company its agents and contractors\nshall determine.\n8. The expiration or determination of this Agreement shall not affect\nthe enforcement of any right obligation or liability previously\nacquired accrued or incurred hereunder.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n8\nDIVISION B - TIMBER RIGHTS\n9. The Forests Act shall apply to and with respect to all operations of\nthe Company under this Agreement except in so far as that Act\nmay be inconsistent with the provisions of this Agreement.\n10. (1) Save as expressly provided by this Agreement or the Act nothing\nin this Agreement or the Act shall affect the rights powers and\nprivileges acquired by any person (whether before or after the\ncommencement of the Act) under the Forests Act or any other Act.\n(2) Notwithstanding anything contained in this Agreement or the Act\nany person who has acquired or acquires any rights powers or\nprivileges as aforesaid shall be entitled to the full and free right of\nentry to the area in respect of which they were or are acquired.\n11. Subject to the Secretary's compliance with the obligations\nexpressed in clause 14 hereof nothing in the Agreement shall\noperate so as to restrict the Secretary's rights pursuant to the\nForests Act to sell forest produce to meet the reasonable\nrequirements of the general public. The Secretary shall be the sole\njudge as to what are reasonable requirements within the meaning\nof this clause.\n12. In order to ensure the effective management and utilization of the\nforests within the Forest Area the Secretary shall carry out a\nreview of pulpwood within the Forest Area at least once in each\nperiod of five years while this Agreement remains in force and\nshall make the results available to the Company.\n13. (1) The Secretary and the Company have jointly prepared a Plan of\nUtilization for the supply of pulpwood based on the Company's\nestimates of its pulpwood requirements for the year 1996-1997 and\na provisional plan for the supply of pulpwood for the next two\nyears based on the Company's estimates of its pulpwood\nrequirements. Not later than the thirtieth day of April in each year\ncommencing 30 April 1997 the Secretary and the Company shall\njointly prepare a Plan of Utilization for the supply of pulpwood for\nthe following year and a provisional plan for the supply of\npulpwood for the next two years based on the Company's estimates\nof its pulpwood requirements. For that purpose the Company shall\nby the first day of March in each year commencing 1 March 1997\nsubmit to the Secretary in writing its estimates of its pulpwood\nrequirements for the period to be covered by the Plan of Utilization\nand the provisional plan. The Plan of Utilization shall (in addition\nto any other matters which the Secretary and the Company desire\nto include) prescribe -\n(a) the areas to be made available under this Agreement for\nthe obtaining of pulpwood;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n9\n(b) estimates of yield of each class of pulpwood from the\nareas to be so made available;\n(c) organisation of and obligations of the Company or the\nDepartment as the case may be with respect to the\nfelling and extraction of pulpwood;\n(d) road construction and maintenance and responsibility\ntherefor.\n(2) The Secretary and the Company may during the currency of any\nPlan of Utilization agree to a modification of the Plan of\nUtilization.\n(3) The Secretary and the Company shall conform with each Plan of\nUtilization or modified or revised Plan of Utilization.\n(4) The Secretary and the Company may each nominate from time to\ntime two of its officers to form a committee the functions of which\nshall include -\n(a) the detailed preparation and revision of Plans of\nUtilization for submission to the Secretary and the\nCompany for approval;\n(b) the co-ordination of pulpwood operations;\n(c) the investigation of any other matters arising from this\nAgreement which it may be jointly required by the\nSecretary and the Company to investigate.\n(5) If the Secretary is satisfied (including on representation by the\nCompany) that pulpwood to be felled under any Plan of Utilization\nfrom any area (the original area) would not be obtainable at an\neconomic cost, pulpwood shall not be felled or extracted from that\narea and the Secretary shall substitute for the original area another\narea as will enable pulpwood which it would have been entitled to\ntake from the original area to be obtained at an economic cost,\nincluding where pulpwood wood is to be felled and delivered by\nthe Department under the Plan of Utilisation taking into account\nany increased cost of delivery so arising. Any dispute as to what\nconstitutes economic cost will be referred for determination in\naccordance with Clause 37.\n(6) If a Plan of Utilization imposes obligations on the Company for\nthe felling and extraction of pulpwood the Company shall\ncomplete to the satisfaction of the Secretary and in accordance\nwith that Plan of Utilization the extraction of pulpwood within any\narea (other than an area in which the Secretary fells or fells and\nremoves pulpwood timber) made available under the Plan of\nUtilization PROVIDED that the Company shall be deemed to have\ncompleted the extraction of pulpwood as aforesaid to the\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n10\nsatisfaction of the Secretary unless the Secretary if it is not\nsatisfied with the manner in which the extraction of pulpwood\nfrom any area is being carried out gives to the Company written\nnotice to that effect within a reasonable time (being not less than\nfourteen days) before the date on which the extraction as aforesaid\nshould in the opinion of an authorised officer having control of the\narea be completed and in that event the Company shall within a\nreasonable period after receipt of the notice complete the\nextraction as aforesaid to the satisfaction of the Secretary.\n(7) Subject to sub-clause 22(1) the Company shall be entitled to carry\nout in State forest works required to enable the extraction of\npulpwood by it in accordance with this Agreement from any area\nprescribed in any Plan of Utilization or modified or revised Plan of\nUtilization.\n(8) When a person obtains pulpwood from the Forest Area in\naccordance with rights granted under the Forests Act or any other\nAct at the same time as the Company or the Department for\ndelivery to the Company in accordance with the Agreement the\nPlan of Utilization shall provide that -\n(i) as far as practicable there will be no discrimination\nbetween that person and the Company or the\nDepartment as the case may be as to factors affecting\ncosts of felling extracting and loading on to motor\ntrucks of pulpwood; and\n(ii) subject to proper forest management and the necessity\nof avoiding waste of merchantable material operations\nare located so that cartage costs within the Forest Area\nare minimised for that person and the Company or the\nDepartment as the case may be.\n14. (1) Subject to the provisions of clause 13 hereof and of the succeeding\nsub-clauses of this clause the Company without obtaining any\nlease licence permit or authority under the Forests Act shall have -\n(a) the right (which shall not be exclusive) to obtain\npulpwood timber by its employees agents or contractors\nfrom the Forest Area in accordance with any Plan of\nUtilization;\n(b) the right (which shall not be exclusive) to obtain\npulpwood timber by its employees agents or contractors\nfrom the areas outside the Forest Area in accordance\nwith any Plan of Utilization.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n11\n(2) The Secretary shall be bound in each year to make available to the\nCompany or to have the Department deliver to the Company as the\nPlan of Utilization may require from areas of forest as provided in\nthis clause and in accordance with a Plan of Utilization a minimum\nannual supply of pulpwood which shall be -\n(a) in each of the years 1996 - 1997 to 2003 - 2004\ninclusive - 500,000 cubic metres;\n(b) in each of the years 2004 - 2005 to 2006 - 2007\ninclusive - 450,000 cubic metres;\n(c) in each of the years 2007 - 2008 to 2009 - 2010\ninclusive - 400,000 cubic metres;\n(d) in each of the years 2010 - 2011 to 2029 - 2030\ninclusive - 350,000 cubic metres,\nof which at least 300,000 cubic metres shall be made available to\nthe Company or delivered by the Department to the Company as\nthe Plan of Utilization may require from mountain forests inside\nthe Forest Area.\n(3) The Secretary may with the approval of the Minister by written\nagreement with the Company increase or decrease for any period\ncommencing from the first day of July next following the date of\nsuch agreement the minimum annual supply referred to in sub-\nclause (2) of this clause for that period and any minimum annual\nsupply so agreed upon may likewise be further increased or\ndecreased.\n(4) The volume of pulpwood specified in sub-clause (2) of this clause\nto be made available from mountain forests may not at any time be\naltered without the consent of the Company.\n(5) The Secretary in its discretion may whether for extraction by the\nCompany or delivery to the Company by the Department as the\ncase may be -\n(a) make available in any year at the request of the\nCompany a quantity of pulpwood exceeding the amount\nof the minimum annual supply of pulpwood;\n(b) make available to the Company in any year by\nagreement with it a proportion of the Company's\nrequirements of pulpwood for that year from State forest\nnot forming part of the Forest Area;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n12\n(c) in any year whether by agreement with the Company or\nnot, make available to the Company from State forest\nnot forming part of the Forest Area and generally\nsituated within 200 kilometres by road (using the\nshortest practicable route) from the Maryvale Mill a\nvolume of pulpwood not exceeding -\n(i) 150,000 cubic metres; or\n(ii) the volume in excess of 300,000 cubic metres\nof the minimum annual supply of pulpwood\nwhichever is the lesser, at such royalty rates as may\nfrom time to time be determined by the Secretary\nprovided that if the Company is able to show to the\nsatisfaction of the Secretary that the pulpwood so made\navailable from any area would not be obtainable at an\neconomic cost the Secretary shall not require it to take\nsuch pulpwood or accept delivery of it by the\nDepartment and shall substitute another area as will\nenable the Company to take or accept delivery of the\npulpwood at an economic cost provided always that if\nthe Secretary is not so persuaded the Company by\nnotice in writing to the Secretary may require the\ndispute to be determined by arbitration in accordance\nwith clause 37 and further provided that all pulpwood\nwhich is expected to become available from sawmilling\nand silvicultural operations in the Forest Area has first\nbeen offered to the Company before being offered to\nany other person.\n(6) The Company shall be entitled to obtain pulpwood in accordance\nwith a Plan of Utilization from logging residue and standing trees\nas indicated by an authorised officer in accordance with\nprescriptions laid down by the Secretary for the harvesting of\nforest produce. Pulpwood harvesting operations shall be restricted\nto such parts of the areas of forest as provided in accordance with a\nPlan of Utilization and shall be conducted in a manner satisfactory\nto the Secretary and in accordance with the directions of an\nauthorised officer.\n(7) The Plan of Utilization shall specify whether the organisation and\ncarrying out of the felling and extraction of the pulpwood shall be\nthe responsibility of the Department or the Company. The\norganisation and carrying out of the felling and extraction of the\npulpwood in accordance with the Plan of Utilization for any year\ncommencing on or after 1 July 1997 shall be the responsibility of\nthe Company. However, if by the 15th April in any year including\nby the 15th April 1997, the Secretary is able to demonstrate to the\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n13\nreasonable satisfaction of the Company that the bona fide cost at\nwhich the Department could extract and fell the pulpwood to be\nextracted and felled pursuant to the Plan of Utilization for the next\nensuing year commencing 1 July and deliver it upon conditions no\nless favourable to the Company to the mill gate at Maryvale (the\n\"Department Price\") would be less than the price per cubic metre\nat which the Company could extract fell and so deliver pursuant to\nsuch Plan of Utilization, such extraction felling and delivery shall\nbe the responsibility of the Department unless the Company is\nprepared to equal the Department Price.\n(8) The following shall apply to any pulpwood to be extracted felled\nand delivered by the Department in accordance with a Plan of\nUtilization -\n(a) Should the Company reject any pulpwood delivered to it\nby the Department on any of the grounds set out in\nclause 14(10) the same shall be set aside for inspection\non behalf of the Department.\n(b) If the Company's rejection is accepted by the\nDepartment, delivery of substitute pulpwood will be\nmade to the Company as soon as practicable and in\nconsultation with the Company at no additional cost to\nthe Company, the original delivery cost to be charged in\nrespect of subsequent deliveries when received.\n(9) The Company shall pay to the Secretary -\n(a) the licence fee payable in each year commencing 1 July,\n2004 under the provisions of this Division; and\n(b) as to pulpwood obtained from pulpwood timber which\nthe Company either by itself or its contractors fells and\nremoves - the royalty payable from time to time under\nthe provisions of this Division; and\n(c) as to pulpwood obtained from pulpwood timber which\nthe Department either fells or fells and removes - the\nroyalty as aforesaid and the Department's charges for\nfelling or felling and removal as specified in the\nrelevant Plan of Utilization.\n(10) The Company shall not be bound to accept timber which -\n(a) will not produce pulpwood of at least 3.0 metres in\nlength;\n(b) is not sufficiently straight to produce pulpwood suitable\nfor the manufacturing processes for the time being\nemployed in the industry;\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n14\n(c) is so defective due to the presence of rot or other faults\nthat pulpwood cannot be produced economically; or\n(d) in forests of regrowth is less than ten centimetres in\ndiameter under bark and in forests other than forests of\nregrowth is less than fifteen centimetres diameter under\nbark.\n(11) If pulpwood which is expected to become available from\nsawmilling or silvicultural operations in the Forest Area is offered\nto the Company during the modification or revision of any Plan of\nUtilization and the Company advises that it does not require such\npulpwood then the Company shall not unreasonably withhold its\nconsent to disposal by the Secretary of such pulpwood to any other\nperson for any purpose whatsoever.\n(12) If as the result of salvage operations following an occurrence\nwhich the Secretary and the Company agree is a major disaster a\nquantity of pulpwood which the Company advises is beyond its\nability to utilise arises within the Forest Area then the Secretary\nmay dispose of such pulpwood to other persons.\n15. In order to assure to the Company supplies of pulpwood in\nconnection with any proposed development of the industry it is\nprovided as follows:\n(a) representatives of the Secretary and the Company shall\ninvestigate the development and the pulpwood supplies\navailable in the Forest Area;\n(b) if as a result of that investigation the Secretary is\nsatisfied that having regard to the Company's future\nrequirements of pulpwood it is reasonable to do so the\nSecretary may with the approval of the Minister either -\n(i) increase the Forest Area by the inclusion of\nadditional areas of State forest; or\n(ii) reduce the Forest Area to an area capable in\nits opinion of producing adequate supplies of\nthe types of pulpwood required for the\neconomic continuation of the industry,\nPROVIDED THAT -\n(i) reasonable allowance shall be made for the\npossibility of destruction of or damage to\nforests by fire and other causes; and\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n15\n(ii) so far as is consistent with proper forest\nmanagement the areas from which supplies of\npulpwood timber can be most conveniently\nobtained at the cheapest rates shall be made\navailable or shall remain available to the\nCompany;\n(c) if-\n(i) the Company seeks an extension of the\noperation of this Agreement beyond the date\nof expiration; and\n(ii) the Secretary as a result of the said\ninvestigation is satisfied that the extension of\nthe operation of this Agreement for the period\nsought by the Company is necessary for the\ncontinuation of the industry -\nthe Secretary shall make a recommendation to the\nMinister that a Bill be introduced into the Parliament of\nthe State of Victoria as soon as possible to extend the\noperation of this Agreement for that period.\n16. (1) With respect to pulpwood referred to in clause 14 hereof the\nCompany shall be bound in each year in which the quantity\ncomprising the minimum annual supply of pulpwood for that year\nis available to it either -\n(a) to take or accept delivery as the case may be pursuant to\nthe Plan of Utilization of not less than eighty five per\ncentum of that quantity; or\n(b) if it takes or accepts delivery as aforesaid of less than\neighty five per centum of that quantity, to pay royalty to\nthe Secretary on the deficiency at a rate equal to the\naverage royalty rate paid for pulpwood for that year.\n(2) If the Company in respect of any year makes any payment under\nparagraph (b) of sub-clause (1) of this clause in respect of a\ndeficiency in that year and during either or both of the two years\nnext following that year it takes or accepts delivery of a quantity of\npulpwood in excess of eighty five per centum of the minimum\nannual supply for those respective years then the amount of royalty\npayable in respect of such excess shall be reduced by an amount\nnot exceeding in the aggregate the royalty paid in respect of the\ndeficiency.\n(3) (a) In the event of damage to the Company's forests in\nVictoria by fire drought insects disease or other cause\nthe provisions of this clause shall upon the Company\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n16\ngiving written notice to the Secretary be modified to the\nextent that the pulpwood from such damaged forests is\nsalvable.\n(b) In the event of damage of the kind referred to in the\npreceding paragraph to State forests within the Forest\nArea the Company shall to the extent that the pulpwood\nfrom such damaged forests is salvable use its best\nendeavours to use pulpwood from such forests including\nreducing the supply from the Company's own forests in\nVictoria to the fullest extent practicable.\n(c) In the event of damage of the kind referred to in\nparagraph (a) of this sub-clause occurring to the\nCompany's forests in Victoria and State forests within\nthe Forest Area at or about the same time the provisions\nof paragraphs (a) and (b) of this sub-clause shall not\napply and if damage of that kind occurs to the forests of\none party within twelve months of damage of that kind\noccurring to the forests of the other party the provisions\nof paragraphs (a) and (b) of this sub-clause may be\nmodified by agreement between the Secretary and the\nCompany or failing agreement as the Secretary may\ndetermine.\n(4) For the purposes of determining whether the Company has taken\nor accepted delivery of eighty five per centum of the quantity of\npulpwood comprised in the minimum annual supply of pulpwood\nin any year, all pulpwood obtained by the Company or delivered\nby the Department to the Company in the year from any State\nforest (whether under this Agreement or otherwise) and on which\nroyalty has been paid to the Secretary shall be taken into account.\n(5) For the purposes of sub-clause (1) of this clause pulpwood shall\nnot be deemed to be available from an area of forest if by reason of\nstrike lockout fire storm or other unforeseen circumstances the\nmeans of supply from that area are interrupted or destroyed.\n(6) If owing to any change in the economics of the industry (such as\ncompetition from other raw materials or products, change in the\nextent of public demands, change in quality of products required\nby the public or substitution of other products requiring different\ntypes of raw material) the continued performance by the Company\nof its obligation under sub-clause (1) of this clause or the payment\nof royalties pursuant to this Agreement would affect it unfairly:-\n(a) the Secretary on the written request of the Company\nshall confer with it with a view to agreeing upon such a\nmodification or suspension of the Company's\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n17\nobligations under this clause or clause 20 as in view of\nthe altered circumstances will be fair and reasonable;\n(b) if the Secretary and the Company fail to agree upon a\nmodification or suspension as aforesaid within sixty\n(60) days of the request in writing made under clause\n16(6)(a) the matter shall be determined in accordance\nwith clause 37 hereof;\n(c) any modification or suspension as aforesaid agreed\nupon by the Secretary and the Company or\ndetermination under clause 37 hereof shall be given\neffect accordingly, but so that all costs of the Secretary\nas between party and party of and incidental to any such\ndetermination shall be paid by the Company.\n17. (1) The provisions contained in sub-clause (2) shall apply with respect\nto the licence fee payable under this Agreement.\n(2) (a) The Company shall pay to the Secretary an annual\nlicence fee. However:\n(i) payment of the licence fee otherwise payable\nis waived by the Secretary until the year\ncommencing 1 July 2004;\n(ii) the amount of the licence fee shall be an\namount calculated by multiplying the sum of\n$0.50 (indexed to changes in pulpwood\nroyalty rates since 1 July, 1996) by the\nvolume (specified in cubic metres) of the\nminimum annual supply of pulpwood in the\nyear in which the licence fee becomes\npayable.\n(b) On or before the thirtieth day of each year during the\nterm of this Agreement, or within 30 days of being so\nadvised, whichever is the later, the Company shall pay\nthe annual licence fee to the Secretary. Alternatively\nthe annual licence fee may be paid six monthly in\ninstalments by prior arrangement with the Secretary.\nIf the annual fee is payable in instalments, interest shall\nbe applied for a period of 6 months to the second six\nmonthly payment at the rate for the time being fixed\nunder Section 30 of the Conservation, Forest and Lands\nAct (or any successor Act to that Act). If without\nreasonable cause, the licence fee is not paid after\nbecoming overdue the Company shall pay interest on\nthe sum due but unpaid, from the date that sum became\noverdue at the rate for the time being fixed under\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n18\nSection 30 of the Conservation, Forests and Lands Act\n(or any successor Act of that Act).\n(c) If the licence fee or an instalment of licence fee remains\noverdue for more than 14 days then the Secretary or his\ndelegate may by notice in writing to the Company direct\nthat no further timber may be taken under this\nAgreement until the amount and any interest thereon are\npaid.\n18. (1) The provisions contained in sub-clause (2) shall apply with respect\nto royalty payable under this Agreement.\n(2) (a) Accounts for royalty shall be issued monthly by the\nDepartment.\n(b) An account issued for royalty is due for payment by the\nCompany immediately it is rendered and becomes\noverdue if not paid by thirty (30) days from the days\nfrom the date the account is rendered.\n(c) If royalty is not paid after becoming overdue the\nCompany shall pay interest on the sum due but unpaid,\nfrom the date that sum became overdue at the rate for\ntime being fixed under Section 30 of the Conservation,\nForests and Lands Act (or any successor Act of that\nAct).\n(d) If an account remains overdue for more than 14 days\nthen the Secretary or his delegate may direct by notice\nin writing to the Company that no further timber shall\nbe taken by the Company until the outstanding amount\nhas been paid in full.\n19. (1) For the purposes of determining rates of royalty payable under this\nAgreement pulpwood shall be in one of the following classes -\nash species from within the Forest Area;\nmixed species from within the Forest Area;\npulpwood of whatever class from outside the Forest Area.\n(2) Royalty on pulpwood obtained by the Company during the period\n1 July 1995 to 30 June 1996 is acknowledged to have been payable\npursuant to the original agreement at the rates following:-\nPulpwood Class Rate in $ Per Cubic Metre\nAsh species from within the Forest Area $11.05\nMixed species from within the Forest Area $ 8.46\nPulpwood of any class from outside the Forest Area $ 8.46\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n19\n(3) The Secretary and the Company may at any time by agreement\nvary the classification of pulpwood provided in sub-clause (1) of\nthis clause and the royalty rates applicable to the classes of\npulpwood so varied shall be ascertained in a like manner to that\nprovided in clause 20 hereof. Such variation may without\naffecting the generality of the foregoing be in respect of the\nspecies or age of the trees from which pulpwood will be obtained\nor the locality in which they are growing or the conditions\nspecified by the Secretary under which they may be cut.\n20 (1) During each successive period of twelve months from 1 July 1996\nthe royalty payable shall be:\n(a) at the rates agreed upon by the Secretary and the\nCompany having regard to:\n• the Company's need for international\ncompetitiveness;\n• the payment by the Company of the annual licence\nfee as from the year commencing 1 July 2004; and\n• the Secretary's need for commercial viability,\n(those matters being hereinafter collectively called \"the\nobjectives\"); or\n(b) failing agreement within 90 days of the commencement\nof that period at the rates calculated by adjusting the\nrates previously payable (up or down as the case\nrequires) by one half of the percentage change proved\nby audit of the Secretary to have occurred during the\npreceding period of twelve months in the average gross\nprice per tonne charged by the Company bona fide and\non an arms length basis to its customers for all paper\ngoods manufactured in Victoria and sold by the\nCompany during that period or in accordance with such\nother formula as may be agreed between the Secretary\nand the Company from time to time.\n(2) The Company shall give the Secretary its employees and\nauthorised agents access to all accounts and papers and shall do all\nthings reasonably required by the Secretary for the purposes of the\naudit contemplated by sub-clause (1).\n(3) Any information obtained from the Company under sub-clause (2)\nor sub-clause (6) below shall be used only for the purposes for\nwhich it was obtained shall be treated as confidential and shall\nonly be disclosed if so required by law.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n20\n(4) If either of the Secretary or the Company is not satisfied that any\nof the objectives are likely to be achieved if royalty is paid at the\nrates determined in accordance with sub-clause (1) and have\nnotified the other accordingly within 30 days of being advised of\nthe calculation of those rates, then the rates in respect of which the\nSecretary or the Company (as the case may be) are not satisfied\nshall instead be the rates determined by arbitration in accordance\nwith Clause 37 hereof.\n(5) The arbitrators appointed in accordance with clause 37 hereof or\ntheir umpire shall take into consideration any alteration in\ncircumstances and any other relevant matters which any of the\nparties to the reference may bring before the arbitrators or the\numpire.\n(6) The arbitrators appointed in accordance with clause 37 hereof or\ntheir umpire or some person appointed on their behalf may\ninvestigate the Company's affairs and accounts so far as may be\nnecessary to assist them to determine fair rates of royalty and the\nofficers of the Company shall give them full access to all accounts\nand papers necessary for that purpose and shall afford them full\ninformation and assistance.\n(7) The Company shall continue to pay royalty at the rates previously\npayable until the adjustment of the rates has been agreed or\ndetermined in accordance with this clause 20 whereupon any\nnecessary adjustment retrospective to the commencement of the\nrelevant twelve month period will be made between the parties.\n21. With respect to obtaining and transporting pulpwood timber the\nfollowing provisions shall have effect:\n(a) the Secretary shall take all reasonable steps in its power\nto facilitate the obtaining by the Company in exercise of\nthe rights granted under this Agreement of pulpwood\ntimber or pulpwood from Crown lands the subject of\nany timber cutting licence issued in accordance with the\nprovisions of the Forests Act and in particular to\nfacilitate the supply to the Company by the holder of\nany such licence of pulpwood from the lands affected\nby the licence;\n(b) for the purposes of Section 52 of the Forests Act the\nCompany and persons contracting with the Company\nfor the supply of pulpwood to be obtained under the\nprovisions hereof shall be deemed to have the\nappropriate licences under that Act.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n21\n22. (1) The Company shall not construct any road track passage tramway\nchute or flume or erect any haulage unit or building within any\nState forest without the consent of the Secretary or an authorised\nofficer previously obtained.\n(2) Should the Secretary be unable to complete the program of road\nconstruction and maintenance for which it is responsible under the\nPlan of Utilization in any year it shall make available to the\nCompany a volume of the same class of pulpwood timber and\npulpwood from other roaded areas of forests of regrowth\nequivalent to the volume unavailable to the Company by reason of\nthe Secretary's inability to complete the program.\n23. (1) The quantity of pulpwood upon which royalty is payable under\nthis Agreement shall be determined in such manner (allowance\nbeing made for timber or other substance that is not pulpwood) as\nmay be agreed upon by the Secretary and the Company or failing\nagreement as the Secretary may direct.\n(2) The place at which pulpwood is to be measured shall be as fixed\nby the Secretary from time to time after consultation with the\nCompany.\n(3) If the royalty so payable is to be determined by mass -\n(a) the Company shall provide at its Maryvale mill a\nweighbridge of a pattern approved by a person for the\ntime being performing the duties of an Inspector under\nthe Trade Measurement Act and shall while this\nAgreement remains in force have the weighbridge\nmaintained and periodically verified in accordance with\nthe provisions of that Act;\n(b) at all times while the weighbridge is in accurate\nworking order the quantity of pulpwood upon which\nroyalty is payable under this Agreement shall be\ndetermined by weighing the pulpwood on the\nweighbridge;\n(c) at all times while the weighbridge is not in accurate\nworking order the quantity of pulpwood upon which\nroyalty is payable under this Agreement shall be\ndetermined in such manner as may be agreed upon\nbetween the Secretary and the Company or failing\nagreement as the Secretary may direct.\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n22\n24. (1) The Company shall keep records showing in respect of each year -\n(a) particulars of the respective quantities of pulpwood\nobtained by it or delivered by the Department to it\nfrom -\n(i) the Forest Area or any subdivisions thereof\nspecified in any Plan of Utilization as\naforesaid;\n(ii) other areas of State forest;\n(iii) any source other than State forest.\n(b) particulars in respect of each of the sources mentioned\nin the last preceding paragraph of the respective\nquantities of pulpwood obtained by the Company or\ndelivered by the Department to the Company from -\n(i) ash species from within the Forest Area;\n(ii) mixed species from within the Forest Area;\nand\n(iii) pulpwood of any class from outside the\nForest Area.\n(c) particulars of the quantities of pulpwood obtained from\nmill waste; and\n(d) such other particulars of a similar nature as may be\nprescribed by regulation under the Act.\n(2) The Company shall make such records available for inspection at\nall reasonable times by an officer appointed by the Secretary for\nthat purpose.\n(3) Not later than the fifteenth day of every month the Company shall\nfurnish to the Secretary a return in the form prescribed by\nregulation under the Act or in any other form approved by the\nSecretary of all pulpwood received by it during the last preceding\nmonth.\n(4) The Company shall also furnish to the Secretary returns in respect\nof the matters mentioned in sub-clause (1) of this clause in such\nform and at such times as from time to time are prescribed by\nregulation under the Act or in any other form approved by the\nSecretary.\n(5) The Secretary or any person appointed by it shall be entitled to\nrequire from the officers of the Company such information and\nexplanations as are necessary for the purpose of testing and\nverifying the completeness and accuracy of the records and\nreturns. The Secretary and its officers and any person appointed\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n23\nby the Secretary for the purposes of this sub-clause shall keep\nstrictly confidential any information obtained under this sub-\nclause.\n25. (1) The Secretary shall give to the Company prior to the date on which\nit is entitled under this Agreement to obtain pulpwood timber from\nany area written notice of the conditions published by the\nSecretary in respect of the cutting of pulpwood timber in that area\nand the Company and any person authorized by it (whether by\ncontract or otherwise) to cut pulpwood timber in that area shall be\njointly and severally bound to comply with the said conditions.\n(2) The Company shall notify the Secretary in writing from time to\ntime of the names of the foremen contractors and other persons\nwho are in charge of or are directing the obtaining of pulpwood\ntimber pursuant to this Agreement.\n(3) The Company shall supply to each such person for production\nwhen required by an authorised officer evidence in a form\nsatisfactory to the Secretary that he is engaged in the obtaining of\npulpwood timber pursuant to this Agreement and the Company\nshall forthwith notify the Secretary in writing whenever such\nperson ceases to be so engaged.\n(4) Any person contracting with the Company to fell or fell and\nremove pulpwood timber pursuant to this Agreement whose name\nhas been notified to the Secretary as aforesaid shall until such time\nas this contract has expired or has been determined or until the\nSecretary directs the Company in writing to terminate his authority\nto fell or fell and remove pulpwood timber (whichever first occurs)\nbe deemed to hold an appropriate licence under the Forests Act.\n26. The Company and the Secretary agree that the full utilization of\nwood material felled during integrated harvesting operations is\ndesirable. To this end, the parties will work towards a proportion\nof the minimum annual supply being supplied, by agreement, as\nchip rather than roundwood.\nDIVISION C. - OTHER RIGHTS AND POWERS\n27. If any easement or other right in or over private property which is\nnecessary or desirable for the convenient carrying on of the\nindustry can be obtained under the Forests Act or the Conservation\nForests and Lands Act:-\n(a) At the request of the Company the Minister shall on the\nrecommendation of the Secretary pursuant to the Forests\nAct and the Secretary pursuant to the Conservation\nForests and Lands Act shall exercise the powers vested\nin the Minister or the Secretary as the case may be\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n24\nunder those Acts for the purposes of obtaining the\neasement or right which when obtained shall be so\nexercised as to enable the Company conveniently to\ncarry on the industry.\n(b) the Company shall pay all expenses incurred by the\nMinister or Secretary as the case may be in exercising\nsuch powers and shall defray all payments to be made to\nowners of the property affected.\n28. The authority having the care and management of any public road\nstreet highway tramway or railway (all of which are in this clause\nincluded in the word \"road\") upon application by the Company and\nupon the report of any qualified engineer or licensed surveyor -\n(i) that a culvert pipe tunnel flume channel or drain (all of\nwhich are in this clause included in the word \"work\")\ncan be laid or constructed on under or over any such\nroad without any substantial injury to or obstruction of\nthe traffic thereon; and\n(ii) that the work is necessary for the due and proper\ncarrying on of the industry or for the conveyance of\nwater for its purposes -\nby order in writing subject to the rights of owners and occupiers of\nadjoining or contiguous lands and of any persons lawfully having\nworks on under or over any such road may consent to the\nconstruction of the work by the Company for the purpose of\nconveying any water or process water to or from any land upon\nwhich the industry is carried on or is proposed to be carried on\nPROVIDED that -\n(a) the authority shall not unreasonably refuse its consent to\nthe construction of any work in accordance with such\nterms and conditions as the authority may determine;\n(b) every work shall be constructed in accordance with such\nterms and conditions;\n(c) the authority may at its discretion carry out the work at\nthe cost of the Company.\n29. The powers of the Governor in Council and the Minister\nadministering the Water Act 1989 to grant and issue leases and\nlicences under the Water Act 1989 for pumping sites water\neasements the diversion of water and the cutting of races and other\nnecessary purposes shall be deemed to extend to the grant and\nissue to the Company of such instruments (and in the case of bulk\nentitlements the Company shall be granted a bulk entitlement\nsufficient to meet the requirements of the Company to carry on the\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n25\nindustry at the Maryvale Mill during the term of this Agreement as\nif the Company were an Authority for the purposes of Division 1\nof Part 4 of the Water Act 1989) for a period ending on the date of\nexpiration or sooner determination of this Agreement. Subject to\nany Act for the time being in force, the Company shall have the\nright to discharge the process water from its mills into the River\nLatrobe at a point or points on the river frontage adjacent to the\nMaryvale Mill.\n30. The Company shall subject to the approval of the Minister\nresponsible for the administration of the Land Act 1958 (the \"Land\nMinister\") be entitled to licences in respect of any strip or strips of\nunoccupied Crown land along the banks of any stream on which it\nis necessary to construct outflow drains tunnels and pipe lines for\nthe discharge of process water as aforesaid.\n31. (1) Whenever the Land Minister after hearing the Company and any\npersons interested in any land concerned or having given them an\nopportunity to be heard is satisfied that it is necessary or desirable\nthat any land (including any easement right or privilege in over or\naffecting any land all of which are in this clause included in the\nexpression \"land\") should be compulsorily purchased taken or used\nby the Company for the purposes of the industry, the Land\nMinister shall give to the Governor in Council a certificate to that\neffect under its seal specifying and delineating on a plan the land\nproposed to be so purchased taken or used and the purposes for\nwhich it is required.\n(2) Upon approval by the Governor in Council of a certificate as\naforesaid it shall be lawful for the Company and its agents and\nworkmen and all other persons authorised by it to enter into and\nupon and to take possession of and appropriate the land specified\nin the certificate for the purposes so specified in the manner\nprovided for the resumption of land by the Land Minister under the\nLand Act and subject to all the conditions imposed by that Act.\nFull satisfaction shall be made by the Company in manner\nprovided by that Act to all persons interested in the said land.\nDIVISION D. - SUSPENSION OF OBLIGATIONS AND CONDITIONS\n32. If any of the forests in the Forest Area or any of the forests\nidentified in any Plan of Utilization which are outside the Forest\nArea are damaged or destroyed by fire disease or other cause to\nsuch an extent that it is impracticable for the Secretary to comply\nwith the provisions of clause 14 hereof or that having regard to the\nsituation of those forests and of the Company's mills and other\ncircumstances relevant to such damage or destruction it is\nimpracticable for the Company to obtain under this Agreement\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n26\nsupplies of pulpwood of sufficient quantity at reasonable cost\nwhether by extraction by the Company or delivery from the\nDepartment to enable production of wood pulp to be carried on in\nan economic manner then so long as that state of affairs\ncontinues -\n(a) the Company shall have no claim against the Secretary\nfor the non-fulfilment of its obligations under clause 14\nhereof so far as non-fulfilment is due to any such cause;\n(b) the Company's obligations under this Agreement shall\nbe suspended provided that such suspension shall not\naffect any liability of the Company to make payments\ndue before such suspension occurs;\n(c) any questions or disputes arising in relation to the\noperation of this clause 32 and the suspension of the\nCompany's obligations shall be referred for\ndetermination in accordance with clause 37.\n33. If:\n(a) the Company's mills or other works used in the\nproduction of wood pulp or the means of transport of\npulpwood timber are damaged or destroyed by fire or\nother calamity to a sufficient extent so as not to permit\nthe production of wood pulp in an economic manner; or\n(b) the continuance of the production of wood pulp in an\neconomic manner is rendered impossible by force\nmajeure by legal obstacles or by unforeseen or\nunavoidable cause (other than an economic cause) -\nthen until the damage or destruction can be rectified or the\nmanufacture of wood pulp in an economic manner is resumed the\nCompany shall not be liable for the non-fulfilment of any\nobligation to take, accept delivery of or pay for pulpwood not then\ndelivered provided that the Company can satisfy the Minister that\nthe Company is using its best endeavours to rectify the damage or\ndestruction or resume the manufacture of wood pulp in an\neconomic manner . Any question or dispute as to when the\nobligations of the Company are to be resumed in accordance with\nthis clause 33 shall be referred for determination in accordance\nwith clause 37.\n34. If by reason of war strike lockout or action in the nature of a strike\nor lockout -\n(i) the Secretary or Department is prevented from making\navailable or delivering in accordance with the Plan of\nUtilization pulpwood; or\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n27\n(ii) the Company is prevented from obtaining pulpwood or\naccepting delivery of or carrying on production of wood\npulp in an economic manner -\nthe Secretary shall (as the case requires) grant or make a\nreasonable extension of time in respect of or a reasonable\nmodification of any obligation or condition affected thereby.\n35. The Secretary and the Company may by agreement subject to the\napproval of the Minister and the procedures in the Act from time\nto time amend this Agreement by such additions, deletions and\nvariations of matters of detail as may be necessary or desirable to\nfacilitate the carrying on of the industry.\nDIVISION E - DETERMINATION OF COMPANY'S RIGHTS\n36. (1) If the Company at any time enters into liquidation (other than a\nvoluntary liquidation for the purpose of reconstruction and\nassignment of rights under this Agreement) the Minister upon\nrecommendation of the Secretary may determine this Agreement.\n(2) Subject to clause 36(3) if the Company at any time contravenes or\nbreaches the terms and conditions of this Agreement the Minister\non the recommendation of the Secretary may terminate this\nAgreement by giving notice in writing of intent to terminate in\nwhich event this Agreement shall terminate upon the expiry of the\n30th day from the date of service of notice unless the right of the\nMinister to terminate is referred for determination in accordance\nwith clause 36(4).\n(3) Clause 36(2) is subject to the proviso that the Minister shall only\nbe entitled to terminate this Agreement if the contravention or\nbreach:\nwas not due to mistake, or\nto circumstances beyond the control of the Company, or\nif there was otherwise no reasonable cause therefor, and\nif the State of Victoria has been and will be materially prejudiced\nby the contravention or breach.\n(4) If within fourteen days after service of notice in accordance with\nclause 36(2), the Company serves a notice in writing on the\nMinister disputing the right of the Minister to terminate this\nAgreement, based on the considerations set out in clause 36(3) the\nright of the Minister to determine this Agreement shall be referred\nby the Minister for determination in accordance with clause 37.\nOtherwise failing service of any such notice by the Company this\nAgreement shall determine in accordance with clause 36(2).\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n28\nDIVISION F - SUPPLEMENTAL\n37. Wherever in any clause of this Agreement it is provided that any\nmatter shall or may be determined in accordance with this clause:\n(a) that matter shall be referred to two arbitrators one to be\nappointed by the Company and one by the Secretary;\n(b) the provisions of the Commercial Arbitration Act shall\napply to the reference;\n(c) the arbitrators and any umpire appointed for the purpose\nof the reference shall have regard to all matters set out\nin the clause of this Agreement which provides for\ndetermination of the matter under this clause and shall\ndecide what is fair and reasonable having regard to the\nterm of this Agreement and the circumstances existing\nat the time of the reference.\nIN WITNESS whereof the parties hereto have executed this Agreement the\nday and year first before written.\nSIGNED by the Honourable Marie Therese\nTehan as Minister for Conservation and Land\nManagement for and on behalf of the State of\nVictoria administering the Forests Act 1958\nin the State of Victoria in the presence of\n)\n)\n) MARIE T. TEHAN\n)\n)\nNORMA MARSHALL\nWitness\nTHE COMMON SEAL of AMCOR LIMITED\n(ACN 000 017 372) was hereunto affixed by\nauthority of the Board of Directors\nDONALD B MACFARLANE\nDirector\nGARRY G RINGWOOD\nDirector\n)\n) L. S\n)\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n29\n═══════════════\nSch.\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n30\nENDNOTES\n1. General Information\nMinister's second reading speech—\nLegislative Assembly: 30 May 1996\nLegislative Council: 19 June 1996\nThe long title for the Bill for this Act was \"to ratify an Agreement between\nthe Minister administering the Forests Act 1958 and AMCOR Limited with\nrespect to the supply of pulpwood for the manufacture of wood pulp and for\nother purposes.\"\nThe Forests (Wood Pulp Agreement) Act 1996 was assented to on 2 July\n1996 and came into operation on 2 July 1996.\nEndnotes\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n31\n2. Table of Amendments\nThere are no amendments made to the Forests (Wood Pulp Agreement) Act\n1996 by Acts and subordinate instruments.\nEndnotes\n\nVictorian Legislation and Parliamentary DocumentsAct No. 16/1996\nForests (Wood Pulp Agreement) Act 1996\n32\n3. Explanatory Details\nNo entries at date of publication.\nEndnotes","sortOrder":0}],"analysis":{"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"Based on the available text, the Act appears to have maintained its original narrow purpose of giving legislative force to a specific wood pulp supply agreement. The version history shows no significant amendments, suggesting the scope has remained consistent with its original intent since 1996."},"complexity_factors":["Limited legislative text is visible in the provided extract, making full analysis difficult","Agreement-based legislation requires understanding of an underlying contract not visible here","Intersection of commercial law, forestry regulation, and government contracting adds moderate complexity","Version history suggests minimal amendments, indicating a relatively static and narrow piece of legislation"],"plain_english_summary":"The Act gives parliamentary force to a commercial agreement securing timber supply from Victorian forests for wood‑pulp (paper) production. It binds the government and industry partners, affecting forestry operators, pulp/paper companies, nearby communities and taxpayers. By turning a contract into law it makes the deal harder to undo and signals a long‑term government commitment that can underpin investment."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The Act consolidates and ratifies the existing wood‑pulp supply arrangements rather than creating a new regulatory regime: it gives statutory effect to a revised agreement that consolidates the original 1961 agreement and its amendments (Preamble; Schedule clauses 1–4). It continues long‑term supply commitments (Schedule clause 14(2)), preserves Minister/Secretary discretion over management and modification (Schedule clauses 6, 13, 35), and repeals the prior Forests (Wood Pulp Agreement) Act 1961 (section 8)."},"complexity_factors":["Long-term, granular volume schedule with declining minimum annual supplies through to 30 June 2030 (clause 14(2))","Hybrid statutory-contractual instrument: agreement is ratified so its terms operate as law (section 5 and Schedule clause 3(1))","Significant executive discretion vested in the Secretary and Minister over forest management, Plan of Utilization content and substitutions (clauses 6, 12, 13, 14(5))","Variable royalty-setting mechanism requiring annual agreement or audited price adjustments and access to company accounts (clause 20(1)–(3), (6))","Deferred licence‑fee waiver and later activation of an indexed licence fee from 1 July 2004 (section 6; Schedule clause 17)","Detailed compliance, reporting and records regime with inspection and confidentiality obligations (Schedule clause 24)","Assignment, subsidiary succession and continued company liability on assignment (Schedule clause 5)","Multiple cross-references to other statutes (Forests Act 1958, Conservation, Land Act, Water Act 1989, Trade Measurements Act) increasing interpretive links","Termination and suspension rules tied to factual findings and Ministerial recommendation with right to refer disputes to arbitration (Schedule clauses 32–36, 37)","Operational detail on roles (Department vs Company) and cost comparisons (Department Price) creating procedural complexity (Schedule clause 14(7))"],"plain_english_summary":"This Act ratifies and gives statutory force to a written agreement between the Victorian Minister and AMCOR Ltd securing long‑term supplies of pulpwood for AMCOR’s wood‑pulp operations. It binds the Crown and makes the Department/Secretary responsible for implementing annual Plans of Utilization and deliveries.  \n\nThe Company must pay royalties and (from 1 July 2004) an annual licence fee; the Secretary and Minister set supply plans, classifications and may approve modifications or terminate the agreement. Disputes are resolved by arbitration."},"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: ratifying a specific wood pulp supply agreement between the State and AMCOR. While the Schedule contains extensive operational detail about harvesting, pricing, and dispute resolution, this is all directly related to implementing the core commercial contract. There is no significant mission creep beyond the original intent of securing pulpwood supply for the Maryvale mill."},"complexity_factors":["Lengthy Schedule: The actual Agreement attached as a Schedule runs to 37 clauses across multiple divisions, making the substantive content much longer than the 8-section Act itself.","Nested conditional logic: Heavy use of 'provided that', 'subject to', and 'notwithstanding' clauses creating layered exceptions (e.g., clause 14(7) has multiple conditions for when the Department vs Company handles harvesting).","Cross-referencing: Extensive internal references between clauses (e.g., 'in accordance with clause 37', 'subject to clause 13') and external references to at least 6 other Victorian Acts (Forests Act 1958, Conservation Forests and Lands Act 1987, Commercial Arbitration Act 1984, etc.).","Temporal complexity: Multiple time-bound conditions with different thresholds—licence fee waiver until 2004, declining supply quotas across four distinct periods (1996-2004, 2004-2007, 2007-2010, 2010-2030), and annual royalty renegotiation mechanisms.","Dual operation modes: The Agreement operates differently depending on whether the Company or the Department is responsible for felling/extraction, with different payment structures and quality controls for each scenario.","Defined terms: 24 defined terms in clause 1 of the Schedule, some referring to other defined terms or external statutory definitions.","Economic adjustment mechanisms: Complex formula in clause 20 for royalty rate adjustments based on percentage changes in paper prices, with arbitration fallbacks if parties disagree on 'objectives' being met."],"plain_english_summary":"This Victorian law ratifies (officially approves) a long-term commercial contract between the State of Victoria and AMCOR Limited, a major paper and pulp manufacturer. The Agreement gives AMCOR the right to obtain pulpwood (wood used to make paper) from designated state forests for 34 years, until 2030.\n\n**Key points:**\n\n* **What it does:** The Act gives the force of law to a detailed commercial agreement signed in May 1996. It replaces an earlier 1961 agreement and consolidates various amendments made over the decades.\n* **Who it affects:**\n  * **AMCOR Limited** (now part of Opal Australian Paper): Gets guaranteed access to large volumes of pulpwood from Victorian state forests, with specific quantities set for different periods (starting at 500,000 cubic metres per year, tapering down to 350,000 cubic metres by 2010). The company can harvest the wood itself or have the Department of Natural Resources deliver it.\n  * **The Victorian Government:** Through the Secretary of the Department, must make the wood available according to five-year plans and maintain access roads. The government also waives certain licence fees until 2004 and charges royalties (fees based on volume harvested).\n  * **Other forest users:** The Agreement explicitly preserves the rights of other people who hold licences under the Forests Act 1958, ensuring they can still access the forests.\n* **Why it matters:** This is a major industrial supply contract locked in by Parliament. It ensures AMCOR's Maryvale paper mill has a predictable timber supply for decades, underpins regional employment, and establishes a complex pricing mechanism where royalty rates adjust based on paper prices and inflation. It also includes detailed provisions for what happens if forests are destroyed by fire, if the company goes broke, or if disputes arise (they go to arbitration)."}},"importantCases":[],"_links":{"self":"/api/acts/forests-wood-pulp-agreement-act-1996","history":"/api/acts/forests-wood-pulp-agreement-act-1996/history","analysis":"/api/acts/forests-wood-pulp-agreement-act-1996/analysis","conflicts":"/api/acts/forests-wood-pulp-agreement-act-1996/conflicts","importantCases":"/api/acts/forests-wood-pulp-agreement-act-1996/important-cases","documents":"/api/acts/forests-wood-pulp-agreement-act-1996/documents"}}