247 Nello Siragusa gave evidence (statement 2 June 2000, ex p 5) of contracts in which the developer had no option but to purchase breakwater material and pay a premium on what it would normally have expected to pay for the supply, transport and placement of breakwater material from its own nearby land. The first was construction of the Dawesville Channel near Mandurah. The rock supplied was granite armour at a rate "in the order" of $60/tonne. The material was transported from a quarry at Gosnells and a component of the price reflected that. All he could say about the material component was that it was "substantial". According to Dr Paul, (statement 30 October 2000, Ex D8) who was the Contract Superintendent for the Dawesville Channel Project, that contract was negotiated as a lump sum "no risks" contract rather than as a normal schedule-of-rates contract. Any statements of rates for supply, delivery and placement of rock should therefore be regarded as estimates. Paul gave evidence of what he described as "royalty" payments to owners or operators of quarries for rock used on particular projects. The term is really a misnomer and tends to lead to confusion with true royalty payments, which are payments made to the Crown by way of a levy on the extraction of minerals. So in the present case I would not regard the royalty of $0.30/tonne payable by Alcoa to the Crown under the Alcoa lease to be a measure of the value of limestone extracted - although it would necessarily be a component of that value. It seems to me the true measure of the value of material is the price the owner can get for it on the market (whatever that may be) less the cost of extraction. Paul gave examples of contracts involving payments for armourstone (ie as extracted rock at the quarry) including $0.50/tonne (Esperance Boat Harbour Breakwater, 1981), $1.00/tonne (Hopetoun breakwater, 1983 - granite armourstone), $0.33/tonne (Hopetoun breakwater - limestone armourstone), $2.50/tonne (surplus rock from Yatupa quarry, 1989) and $2.50/tonne (Port of Bunbury - loose rock, 1995).