Victorian Legislation and Parliamentary Documentsi
Version No. 001
Forests (S.E.A.S. Sapfor Ltd Agreement) Act
1993
Act No. 32/1993
Version as at 16 September 1999
TABLE OF PROVISIONS
Section Page
Purpose 1
Commencement 1
Definition 1
Act to bind the Crown 1
Ratification of Agreement 2
Amendment or termination of Agreement 2
SCHEDULE—S.E.A.S. Sapfor Limited Agreement 3
SCHEDULE 1—Investment programmes to be undertaken by
S.E.A.S. Sapfor Limited 22
SCHEDULE 2—Softwood sawlog licence 23
SCHEDULE 3—Code of practice 28
═══════════════
ENDNOTES 30
General Information 30
Table of Amendments 31
Explanatory Details 32
Victorian Legislation and Parliamentary Documents1
Version No. 001
Forests (S.E.A.S. Sapfor Ltd Agreement) Act
1993
Act No. 32/1993
Version as at 16 September 1999
Preamble
The Treasurer, the Minister for Natural Resources,
the Secretary to the Department of Conservation
and Natural Resources and S.E.A.S. Sapfor Ltd
have agreed to certain arrangements for the supply
of softwood for certain operations by S.E.A.S.
Sapfor Ltd and it is expedient to ratify the
Agreement:
The Parliament of Victoria therefore enacts as follows:
Purpose
The purpose of this Act is to ratify an agreement
with S.E.A.S. Sapfor Ltd for the supply of
softwood sawlogs from the State Softwood
Plantations in the Portland Softwood Management
Area.
Commencement
This Act comes into operation on the day on
which it receives the Royal Assent.
Definition
In this Act, "Agreement" means the agreement a
copy of which is set out in the Schedule.
Act to bind the Crown
This Act binds the Crown.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
2
5. Ratification of Agreement
(1) The Agreement is ratified and takes effect as if its
provisions had been expressly enacted in this Act.
(2) The Secretary to the Department of Conservation
and Natural Resources is empowered to carry out
the Agreement, or the Agreement as amended
from time to time.
6. Amendment or termination of Agreement
If the Agreement is amended or terminated in
accordance with its provisions, the Minister must
cause a report giving details of the amendment or
termination to be laid before each House of the
Parliament before the expiration of the 14th sitting
day of that House after the Agreement is amended
or terminated.
s. 5
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
3
SCHEDULE
Section 3
S.E.A.S. SAPFOR LIMITED AGREEMENT
This Agreement is made on 14 April 1993 between:
The Treasurer, State of Victoria, of the first part
and:
The Minister for Natural Resources of the second part
and:
The Secretary to the Department of Conservation and Natural Resources, a
body corporate established by the provisions of the Conservation, Forests
and Lands Act 1987 of the State of Victoria of the third part
and:
S.E.A.S. Sapfor Limited A.C.N. 004 289 730 a Company incorporated in
Victoria and having its registered office at Penola Road, Tarpeena, SA 5277
of the fourth part.
WHEREAS:
I. The Government of the State of Victoria desires to provide a means by
which the Company can be assured of its long term supply of softwood
sawlog and which also ensures that the public of Victoria receives an
adequate return on its investment in softwood plantations and certain
forest production activities.
II. The Company desires to be satisfied that sufficient softwood sawlog
will be available to it over a period of time which will enable it to
establish a sawmill complex capable of sawing and value adding a
minimum of 180,000 cubic metre per annum of softwood sawlog.
III. On the basis of invited Expression of Interest submitted to the Secretary,
28 March 1988 and subsequent entering into of a Memorandum-of-
Understanding on 3 May 1990 which includes reference to the
Expression of Interest and the Preliminary Design and Financial
Statement a significant quantity of softwood sawlog is to be made
available till 30 June 2030.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
4
IV. This Agreement is conditional upon the establishment in the Portland
Softwood Management Area of a new sawmilling complex capable of
sawing and processing into value-added products a minimum of
180,000 cubic metre of softwood sawlog each year at the mill and the
processing of softwood sawlog made available by this Agreement at the
mill.
V. The development of the sawmilling complex is to proceed only on the
basis that it is viable and sustainable in its own right without the need
for recourse to any form of government financial assistance subsidies or
concessions.
VI. The parties hereto desire to enter into this Agreement so that upon an
enabling Act being passed by Parliament and coming into operation the
provisions hereinafter appearing shall have full force and effect.
Now it is hereby agreed as follows:
PART I—PRELIMINARY
In this Agreement unless inconsistent with the context or subject
matter—
"the Act" means the enabling Act of the Parliament of Victoria to be
passed to give effect to this Agreement;
"this Agreement" includes this Agreement as from time to time
amended, supplemented or novated and includes Schedules
hereto and conditions which the Secretary shall from time to time
determine to apply pursuant to Clause 10.(2) and 21;
"CDOB" means centre diameter over bark;
"CDUB" means centre diameter under bark;
"commencement date" means the latest of the date of this Agreement,
the day of Royal Assent to the Act and (if any) the day the Act
comes into operation as provided in the Act;
"Company" means S.E.A.S Sapfor Limited and upon each assignment
to any other Company in accordance with sub-Clause (1) of
Clause 4 means that assignee company;
"Conditions" means the additional covenants terms and conditions
from time to time imposed on the company pursuant to Clause
10.(2);
"cubic metre" means cubic metre gross volume under bark;
"forest officer" means a person appointed as an authorised officer
under the Conservation, Forests and Lands Act 1987 for the
purposes of the Forests Act 1958;
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
5
"forest produce" has the same meaning as in the Forests Act 1958;
"the industry" means the manufacture by the Company of sawn
timber, dressed timber, and further processed products from
softwood sawlog;
"minimum annual supply" means that set out in Clause 12;
"Minister" means Minister responsible from time to time for State
forests and forest management;
"month" means calendar month;
"person" and "persons" include a body corporate and any association
of persons whether or not incorporated as a company or other
body corporate;
"Portland Plantations" means the State Softwood Plantations existing
from time to time within the present Portland Softwood
Management Area as classified by the Secretary;
"production charge" means that set out in Clause 14. (1) (b)
"roading charge" means the charge determined by the Secretary
which is levied from time to time on all forest produce extracted
from forests to cover the cost of maintenance improvement and
construction of forest logging roads;
"Royalty" means all charges and levies on softwood sawlog;
"Royalty Equation System" means the system used by the Secretary
for fixing royalty rates for softwood sawlog from time to time;
"Secretary" means the body corporate established by the
Conservation, Forests and Lands Act 1987;
"SEDUB" means small end diameter under bark;
"softwood sawlog" means sawlog timber (as defined in the Forests
Act 1958) of Pinus radiata or other coniferous species meeting
with specifications as determined from time to time by the
Secretary provided that such specifications are consistent with
Clause 13 of this Agreement;
"State forest" has the same meaning as in the Forests Act 1958;
"year" means a period of twelve months commencing on 1 July and
includes the period between the commencement date and the
30 June 1993.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
6
Act References and Assignation
2. (1) In this Agreement unless inconsistent with the context or subject
matter references to any Act shall include all amendments and
re-enactments thereof for the time being in force and all
supplemental legislation for the time being in force whether by
regulation rule proclamation or order made or continuing under
that Act or any amendment or re-enactment thereof and references
to sections in any Act shall be deemed to include corresponding
sections in any amending or re-enacting Act.
(2) The headings and side notes shall not affect the interpretation of
this Agreement.
(3) A reference to a "Schedule" shall be a reference to a Schedule to
this Agreement. A reference to a "Division" shall be a reference to
a Division of this Agreement.
3. (1) This Agreement shall not be of any force or effect until the Act has
been passed by the Parliament of Victoria and has come into
operation and the passing of the Act and its coming into operation
are both conditions precedent to this Agreement having any force
validity or effect.
(2) Upon and after the commencement date this Agreement shall
supersede the Memorandum of Understanding.
4. (1) The Company shall be at liberty at any time to assign its rights
under this Agreement—
(a) to any company with which pursuant to the Corporations
Law it is deemed to be related but notwithstanding any such
assignment the Company shall remain responsible to the
Secretary for the performance of all the obligations and
conditions imposed upon the Company by this Agreement; or
(b) with the prior consent of the Secretary to any company, such
consent not to be unreasonably withheld, and thereupon the
Company (whether or not there has been any previous
assignment) shall be released totally and forever from all
obligations and conditions imposed on the Company by this
Agreement which are not up to the time of the assignment
required to have been fulfilled.
(2) Upon each such assignment the assignee company shall by virtue
of the Act be subject to all the obligations and conditions imposed
upon the Company by this Agreement so far as they remain in
force and are capable of taking effect and, save to the extent the
contrary may be agreed, which are not required to have been
performed by the Company prior to such assignment.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
7
PART II—OPERATION OF INDUSTRY
Division A—Duration of Agreement
5. (1) This Agreement shall remain in force until 30 June 2030 or, until
sooner determination in accordance with the provisions of this
Agreement.
(2) The expiration or determination of this Agreement shall not affect
the enforcement of any right obligation or liability which was
acquired accrued or incurred prior to expiration or determination.
Division B—Investment Programme
6. (1) In consideration for the Secretary entering this Agreement the
Company agrees to carry out the investment programmes referred
to in the First Schedule hereto.
(2) This Agreement is conditional upon the establishment completion
and commissioning of the sawmilling complex referred to in
paragraph (a) of Clause (1) of the First Schedule by 31 July 1994.
(3) Until the condition specified in Clause 6. (2) is satisfied
Division C will have no effect and the Secretary's rights pursuant
to the Forests Act 1958 or any other Act shall not be limited in any
way by Division C.
(4) If the investment programme referred to in paragraph (b) of Clause
(1) of the First Schedule is not completed by 31 January 2000 this
Agreement may be terminated by the Secretary pursuant to
Clause 28. (3).
Division C—Softwood Sawlog Rights
7. Nothing in the Agreement shall affect the rights powers and privileges
acquired by any person under or pursuant to the Forests Act 1958 or any
other Act prior to the commencement date.
8. Without limiting the Secretary's obligations under Clauses 11 (1) and 12
hereof to make available to the Company certain supply of softwood
sawlog, nothing in this Agreement shall restrict the Secretary's rights
pursuant to the Forests Act 1958, to sell or grant licences and permits to
obtain forest produce not detrimental to the Company's rights under this
Agreement.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
8
9. (1) Not later than the 31st day of March each year the Secretary in
consultation with the Company shall draw up and deliver to the
Company a plan of utilisation for the supply of softwood sawlog
for the following year and a provisional plan for supply of
softwood sawlog for the further two following years.
(2) The Company within 30 days after delivery of the plan of
utilisation under Clause 9. (1) may request modification of the plan
of utilisation with respect to supply for the immediate following
year and provided that such proposed modification can be shown
to be to the commercial benefit of the Company and the Secretary
and consistent with the principles of proper forest management,
the Secretary will not unreasonably refuse such modification and
in the event that the Company considers the Secretary has
unreasonably refused to consent to such modification, the
modification may be referred to arbitration in accordance with
Clause 27 hereof and the Arbitrators shall determine whether the
Secretary has unreasonably withheld consent.
(3) The plan of utilisation shall set out the locations from which
softwood sawlog may be obtained during the relevant period and
shall specify the specific location area in hectares and the
respective species, quantities and qualities of softwood sawlog
which the Secretary estimates will be obtainable in each area, as
well as the location and standard of road to be provided by the
Secretary.
(4) The Secretary and the Company may during the currency of any
plan of utilisation agree to a modification of the plan.
(5) The Company shall conform with each plan or modified plan of
utilisation.
10. (1) The Company shall comply with the provisions of the Forests Act
1958, with all regulations for the time being in force under the
Forests Act as if the rights granted by this Agreement had been
granted by licence under the Forests Act and with the Code of
Forest Practices for Timber Production and any other relevant
Code of Practice for the time being in force under the
Conservation, Forests and Lands Act 1987.
(2) The Secretary may impose additional covenants terms and
conditions (called the "Conditions") which are not inconsistent
with the provisions of this Agreement as if this Agreement were a
licence issued under Section 52 of the Forests Act 1958. Initially,
such Conditions shall be those set out in the Second Schedule
excepting where inconsistent with specific provisions of this
Agreement. Within one month of the commencement date and
within thirty-days prior to the first day of July in each year of this
Agreement the Secretary may deliver to the Company in written
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
9
form changed (including additional) Conditions as if on each first
day of July the Company was being granted a further or renewed
licence under the said Section 52 but such changed Conditions
shall be no more onerous on the Company than those the Secretary
applies generally throughout the State of Victoria in corresponding
circumstances of forest management to those being so imposed.
Any Conditions (whether initially or from time to time changed)
shall remain imposed until replaced or deleted.
11. (1) Subject to the provisions of this Agreement, the Company shall
have the right to take softwood sawlog by its servants agents or
contractors as provided in Clause 12 hereof.
(2) The Company may be required to obtain softwood sawlog suitable
from which to satisfy the provisions of this Agreement from;
(a) standing trees indicated by a forest officer;
(b) softwood sawlog produced in conjunction with a logging
operation conducted by a person or persons other than the
Company; or
(c) softwood sawlog felled or felled and removed by or on behalf
of the Secretary.
(3) The Secretary may in its discretion if so requested by the Company
modify the Company's obligation to take softwood sawlog felled
or felled and removed by or on behalf of the Secretary which has
been included in the plan of utilisation for that year but any of such
softwood sawlog not taken by the Company shall for the purpose
of Clause 12 hereof be softwood sawlog made available to the
Company by the Secretary.
Minimum Annual Supply
12. (1) Subject to the provisions of Clauses 23 and 25 hereof and to the
payment of the annual licence fee as provided in Clause 17 hereof
the Secretary, subject always to the existing entitlement of other
persons to softwood in the Portland Plantations, shall make
available to the Company a minimum annual supply of softwood
sawlog with Radiata Pine as the major species which unless
increased pursuant to the provisions of sub-clause (4) hereof shall
be—
(i) for period year 1994/95—60,000 cubic metre;
(ii) for the period year 1995/96 to year 1999/2000—142,000
cubic metre each year;
(iii) for the period year 2000/01 to year 2029/30—180,000 cubic
metre each year.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
10
(2) (i) Should the Company take less than the minimum annual
supply of softwood sawlog in any one year commencing after
30 June 1994 and concluding 30 June 1999, it has the right to
carry forward the deficiency to 30 June 2000 and the
Secretary shall make the deficiency available in addition to
the minimum annual supply provided that the total volume
taken does not exceed 770,000 cubic metre for period years
1994/95—1999/2000.
(ii) Should the Company take less than the minimum annual
supply of softwood sawlog in any one year commencing after
30 June 1999, it has the right to carry forward the deficiency
to any of the three years next following so that such as is
carried forward will be used in addition to the minimum
annual supply in the year of utilisation.
(3) The Secretary may in its discretion offer the Company in any year
a quantity of softwood sawlog additional to the minimum annual
supply.
(4) The Secretary may by written agreement with the Company
increase, for any period commencing from the first day of July
next following the date of such agreement, the minimum annual
supply referred to in sub-clause (1) hereof for the period and any
minimum annual supply so agreed upon may likewise be further
increased.
(5) The Secretary shall ensure that the softwood sawlog of each
standard and grade made available to the Company is as good in
species, size, and quality in any year as that which is made
available by the Secretary to any other person or persons in that
year from the Portland Plantations.
13. (1) In each year the volume of softwood sawlog equal to or greater
than 20 cm CDUB shall be at least 95% of the minimum annual
supply.
(2) The Company shall not be bound to accept—
(a) any sawlog which not being sound, clean and free from rot,
doze, blue stain, hail damage and the result of Sirex wasp
infestation beyond the tolerances provided in the Code of
Practice Measuring And Allowing For Defect Softwood
Sawlog which is set out in the Third Schedule or such other
code as from time to time may be adopted by the Secretary in
lieu thereof but should any sawlog be accepted by the
Company which is not sound, clean and free from rot, doze,
blue stain, hail damage and the results of Sirex wasp
infestation, then that sawlog shall only be accepted when
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
11
measured and allowed for defect in accordance with that code
of practice;
(b) any sawlog which is below the following specification—
(i) 15 centimetre SEDUB;
(ii) log length of 3·0 metre and sweep equal to or more than
20% of CDOB for a 3·0 metre log length.
(3) Except to the extent that they are inconsistent with Clause 13. (2)
the produce specifications which apply generally to purchasers
licensees or other persons aquiring softwood sawlogs from the
Secretary shall apply with respect to this Agreement.
(4) The softwood sawlog made available to the Company by this
Agreement shall be processed at the sawmilling complex referred
to in the First Schedule except that with the prior consent of the
Secretary and such consent not to be unreasonably withheld the
Company may process up to 20 per cent of the minimum annual
supply in any one year at a sawmilling complex other than that
described in the First Schedule provided that the Company
processes in that year at the sawmilling complex described in the
First Schedule an equivalent volume of softwood sawlog that has
not been made available to the Company by this Agreement.
Records of the annual volume of softwood sawlog that is
processed by the sawmilling complex described in the First
Schedule shall be maintained by the Company and made available
from time to time in a form and manner acceptable to the
Secretary.
14. (1) For all softwood sawlog obtained by it under this Agreement the
Company shall pay—
(a) as to softwood sawlog which the Company by its servants
agents contractors or otherwise removes or fells and removes
the royalty and roading charge as provided for in Clauses 16
and 18 of this Agreement;
(b) as to softwood sawlog either felled or felled and removed by
or on behalf of the Secretary the royalty and roading charge
as aforesaid and a production charge to be agreed upon from
time to time between the Secretary and the Company for;
(i) the cost to the Secretary of felling or felling and
removal of softwood sawlog in or from the particular
area;
(ii) the overhead expenses of the Secretary in connection
therewith;
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
12
(iii) a profit component expressed as a percentage of the
aggregate of the amounts referred to in sub paragraphs
(i) and (ii).
(2) Failing agreement within fourteen days on the production charge
referred to in paragraph (b) of sub-clause (1) hereof the production
charge shall be determined by the Secretary but so that the
production charge for the cost of felling or felling and removal of
softwood sawlog in or from any area shall be comparable to the
production charge generally incurred by the Company for felling
and felling and removal (as the case may be) of softwood sawlog
at that time in similar form in or from areas which are similar with
respect to yield of softwood sawlog physical circumstances of
extraction and situation in regard to means of transport.
15. (1) Subject to the provisions of Clauses 25 and 26 hereof the
Company shall be bound in each year from 1 July 1994 in which
the minimum annual supply of softwood sawlog to which it is
entitled in that year is available to it either—
(a) to take not less than 90% of softwood sawlog required to be
made available in the plan of utilisation; or
(b) if it takes less than the quantities set out in the preceding
paragraph (a) hereof to pay royalty and roading charge to the
Secretary on the deficiency at a rate equal to the royalty and
roading charge rate payable in that year under Clause 18
hereof.
(2) If the Company during any of the three years next following any
year in which there is a deficiency obtains a quantity of softwood
sawlog in excess of the minimum annual supply the royalty and
roading charge payable on such excess shall be reduced by the
amount of royalty and roading charge paid in respect of the
deficiency.
16. Notwithstanding any contrary provisions contained in the Conditions
the following provision shall apply with respect to royalty, roading
charge, and production charge payable under this Agreement:
(a) Royalty, roading charge, and production charge shall be payable at
such times and in such manner and on such terms as the Secretary
from time to time determines and until otherwise determined shall
be payable at such times and in such manner and on such terms as
are specified in the Conditions after the amounts have been
ascertained in accordance with this Agreement.
(b) If any account remains overdue for more than 14 days the
Secretary may without limiting the obligations of the Company
under Clause 15 hereof by notice in writing to the Company
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
13
suspend its right to obtain softwood sawlog under this Agreement
until payment is made in full.
(c) If the Company disputes the amount of any payment demanded by
the Secretary it shall make the payment under protest and
thereafter shall be entitled to take proceedings for recovery of, and
recover, any amount in excess of the amount it was liable to pay.
17. (1) In addition to royalty, roading charge, and production charge
payable in accordance with Clause 14 hereof an annual licence fee
shall be paid by the Company to the Secretary with respect to the
acquisition by the Company of the right to take softwood sawlog
as provided in Clause 11 (1) hereof.
(2) The annual licence fee will be due and payable in each year on the
30th day of June with respect to the minimum annual supply of
softwood sawlog required to be made available in the following
year. The Secretary may in his discretion determine that the annual
fee may be paid in six monthly instalments.
(3) The annual licence fee will be determined annually by multipying
the minimum annual supply by the base rate which is to be
determined by adjusting the preceding base rate by the same
proportion by which royalty was adjusted in the year that the
preceding base rate was the applicable base rate provided that—
(a) with respect to the 30 June 1992 the base rate shall be
deemed to be $3.37 per cubic metre;
(b) with respect to determining the annual licence fee payable on
30 June 2000 and thereafter, at five yearly intervals sub-
clause (4) of this Clause shall apply.
(4) The amount of the annual licence fee will be reviewed between
1 April 2000 and 30 June 2000 and thereafter between the 1st day
of April and the 30th day of June at five yearly intervals from
1 April 2000 and in the following manner:
(a) A review is to be conducted by the Secretary and the
Company jointly;
(b) The review will establish if a new base rate shall apply;
(c) The review will take account of—
(i) changes in the average domestic market price of sawn
timber;
(ii) changes in the landed price of imported sawn timber
and related products, relative to economy wide indices
of capital and labour costs;
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
14
(iii) the benefit of the special rights granted to the Company
under this Agreement;
(iv) the premium offered in the Expression of Interest to
aquire the right to take softwood sawlog as provide by
Clause 11. (1).
(d) The review will last no longer than the 30th day of June in
the year in which it commenced. In the event that agreement
is not reached between the Secretary and the Company, on or
before that date the matter will be referred to arbitration as
provided by Clause 27 hereof.
(e) Any new base rate so determined will be adjusted in each of
the subsequent four years, similarly as set out in sub-clause
(3) hereof.
(5) In the event of any dispute that can touch upon the calculation of
the annual licence fee is referred to arbitration the annual licence
fee shall be paid on the 30th day of June as if no such dispute had
existed; but if the resolution of the dispute (whether by agreement
between the parties or arbitration) causes a different annual licence
fee to become applicable the Company shall pay to the Secretary
or the Secretary shall pay to the Company forthwith as the case
requires an amount being the difference between the amount of the
annual licence fee so paid and the amount which would have been
payable had the resolution of the dispute been achieved on that
30th day of June.
18. (1) The royalty payable from time to time for softwood sawlog shall
be at the rate as determined in accordance with the Royalty
Equation System and consistent with general softwood sawlog
pricing from State forest in the State of Victoria.
(2) The roading charge payable on all softwood sawlog removed
under this Agreement shall be determined by the Secretary from
time to time and will take account of projected expenditure on
timber extraction roads accessing Portland Plantations and the
advice of the Softwood Management Area Roading Advisory
Committee on which the Company may at its option be
represented.
19. The Company shall not construct within State forest any road track or
passage or any chute without the prior written consent of a forest officer
and shall not construct within State forest any tramway flume or
building or erect any haulage or conversion unit without the prior
written consent of the Secretary, such consent in each case not to be
unreasonably withheld.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
15
20. (1) The quantity of softwood sawlog upon which royalty, roading
charge, and production charge is payable under this Agreement
shall be determined in such manner and at such place as may be
agreed upon by the Secretary and the Company or failing
agreement within thirty days from negotiations commencing as the
Secretary may direct.
(2) If the royalty, roading charge, and production charge so payable is
to be determined by mass—
(a) the Company shall provide at its plant a weighbridge of a
pattern which meets the requirements of the Weights and
Measures Act 1958 and shall while this Agreement remains
in force have the weighbridge maintained and periodically
verified and stamped in accordance with the provisions of
that Act and shall operate the weighbridge in accordance with
the reasonable requirements of the Secretary;
(b) at all times while the weighbridge is in accurate working
order the quantity of softwood sawlog upon which royalty,
roading charge, and production charge is payable under this
Agreement shall be determined by weighing it on the
weighbridge;
(c) at all times while the weighbridge is not in accurate working
order the quantity of softwood sawlog upon which the
royalty, roading charge, and production charge is payable
under this Agreement shall be determined in such manner as
may be agreed upon by the Secretary and the Company or
failing agreement within fourteen days as the Secretary may
reasonably direct.
21. The Secretary may from time to time give to the Company written
notice of reasonable conditions not inconsistent with the provisions and
intent of this Agreement which conditions are, having regard to the
overall provisions of this Agreement, of a minor nature and which
further are of a temporary or passing nature and which shall apply in the
areas from which the Company is obtaining softwood sawlog under this
Agreement. The Company shall comply with any such conditions.
22. (1) The Company shall inform the Secretary in writing once a year of
the names of its servants agents contractors or otherwise who are
engaged in obtaining softwood sawlog under this Agreement.
(2) The Company shall supply to each person who is engaged from
time to time in obtaining softwood sawlog under this Agreement
whether as servant agent contractor or otherwise for production
when required by a forest officer evidence in a form satisfactory to
the Secretary that such person is engaged in obtaining softwood
sawlog under this Agreement and the Company shall forthwith
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
16
inform the Secretary in writing whenever any such person ceases
to be so engaged.
(3) (a) The Company shall include in every contract entered by it
with a contractor for obtaining softwood sawlog under this
Agreement provisions requiring the contractor to comply
with the Forests Act 1958 the regulations made under the
Forests Act 1958, the conditions referred to in Clause 21
hereof which are applicable to that contractor, the conditions
referred to in Clause 10 (2) hereof which are applicable to
that contractor, and with the Code of Forest Practices for
Timber Production, and any other relevant Codes of Practices
for the time being in force under the Conservation, Forests
and Lands Act 1987.
(b) The Company shall upon making any such contract forthwith
give to the Secretary written notice of the contract specifying
the name of the contractor, the duration of the contract and
the quantity of and location from which softwood sawlog are
to be obtained thereunder.
Division D—Miscellaneous
23. (1) If any of the Portland Plantations upon which supply is dependent
are damaged or destroyed by fire disease or other cause beyond the
control of the Secretary to such an extent that it is impracticable
for the Secretary to comply with the provisions of Clause 12
hereof or if by reason of any other cause whatsoever beyond the
control of the Secretary it is unable to comply with those
provisions—
(a) the Company shall have no claim against the Secretary for
the non-fulfilment of its obligations under those provisions as
far as non-fulfilment is due to any such cause; and
(b) the Secretary shall use its best endeavours to provide a supply
of softwood sawlog to the Company having regard on the one
hand to the obligation of the Secretary under this Agreement
to make available to the Company certain supplies of
softwood sawlog and on the other hand the duty of the
Secretary to protect State forests and control and manage
State forests throughout the State of Victoria in a manner
which is not unduly damaging financially to the Secretary or
to the revenues of the State of Victoria and the obligations of
the Secretary under other agreements and licences to other
persons.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
17
24. If, in the opinion of the Secretary, extensive damage occurs to State
forest softwood plantations within 250 kilometres road distance from
the Portland Softwood Management Area, softwood sawlog salvaged
from these plantations may be offered to the Company as part of the
minimum annual supply and at a royalty, roading charge, and
production charge as determined by the Secretary.
25. If—
(a) any of the softwood plantations upon which supply is dependent
are damaged or destroyed by fire disease or other cause to such an
extent that it is impracticable for the Secretary to comply with the
provisions of Clause 12 hereof or if by reason of any other cause
beyond the control of the Secretary it is prevented from complying
with those provisions;
(b) the Company's sawmill complex referred to in First Schedule is
substantially damaged or destroyed by fire or other calamity in
such circumstances as the Company is not reasonably (as to
amount and risk) indemnified under a policy of insurance;
(c) by reason of war riot civil commotion strike lockout or action in
the nature of a strike or lockout ban or limitation on work or
restraint of labour act or restraint of any Government or semi-
government or other public or statutory authority the Company is
substantially impeded from obtaining softwood sawlog or carrying
on the industry at the sawmill complex referred to in the First
Schedule;
then in any of those events—
(i) the Company may apply to the Secretary for termination,
suspension or a reasonable modification of the extent or operation
of its obligations under this Agreement or for an extension of time
for the performance or observance thereof;
(ii) the Secretary upon any such application by the Company shall
decide to grant or refuse termination, a suspension of the said
obligations or a reasonable modification of their extent or
operation or an extension of time for their performance or
observance;
(iii) if the Company is dissatisfied with the decision of the Secretary
upon any such application—
A. arising out of the provisions of the preceding paragraphs (a)
and/or (b) and/or (c);
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
18
B. with the delay (not being less than ten working days from the
date of application) in making the decision arising out of the
provisions of the preceding paragraphs (a) and/or (b) and/or
(c);
then the matter shall if the Company so elects be determined by
arbitration and the arbitrators may determine the matter with reference
to considerations of general justice and fairness and may grant a
suspension modification or extension of time on such terms and
conditions as the arbitrator so determines but such suspension
modification or extension of time shall be subject to review in
accordance with Clause 26. In no event shall a suspension modification
or extension be for an unlimited period of time.
26. If this Agreement has been suspended or modified or an extension of
time has been granted in accordance with Clause 25 and if afterwards
the carrying on by the Company of the industry or the continued
performance by the Company of its obligations under Clauses 14, 15
and 17 hereof are considered by the Secretary to be practicable then—
(i) the Secretary may apply to the Company for a further reasonable
modification of the extent or operation of the Company's
obligations under this Agreement but not so as to exceed the
obligations of the Company initially imposed by this Agreement;
(ii) the Company upon any such application by the Secretary shall
decide to grant or refuse a further reasonable modification of this
extent;
(iii) if the Secretary is dissatisfied with the delay (not being less than
thirty days) in making the decision the matter shall if the Secretary
so elects be determined by arbitration and the arbitrators may
determine the matter with reference to considerations of general
justice and fairness;
(iv) if the Secretary is dissatisfied with the decision of the Company
upon any such application the Secretary shall suggest to the
Company that the Secretary and the Company should negotiate in
good faith to reach a decision acceptable to the Secretary and the
Company but if the Secretary and the Company after negotiating
in good faith cannot within a reasonable time (and in any event not
less than fifteen weeks) reach a decision acceptable to the
Secretary and the Company the matter shall if the Secretary so
elects be determined by arbitration and the arbitrators may
determine the matter with reference to considerations of general
justice and fairness but the arbitrators shall not make any award by
which the obligations of the Company shall exceed those
obligations initially imposed by this Agreement nor any award
which has an effect prior to the date of the Secretary's application
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
19
made under the preceding paragraph (i) which is referred to
arbitration.
27. Wherever it is provided that any matter shall or may be determined by
arbitration—
(a) the matter shall be referred to two arbitrators one to be appointed
by the Company and one by the Secretary;
(b) the provisions of the Commercial Arbitration Act 1984 shall apply
to the reference;
(c) the arbitrators or umpire or some other person appointed on their
behalf may investigate the Company's or Secretary's affairs and
accounts so far as may be necessary to assist them to determine
any matter referred to them and the Company and the Secretary
each shall give them full access to all accounts and papers
necessary for that purpose and shall afford them full information
and assistance.
(d) the parties agree that the purpose of the provision of information or
accounts of either party to the other party or to the arbitrators,
umpire or their appointee is for the sole purpose of the conduct of
the arbitration and such information or accounts is not to be used
or disclosed in any manner or for any purpose not connected with
the arbitration proceedings in the course of which it was provided.
28. (1) If the Company contravenes or fails to comply with the provisions
of this Agreement in circumstances where the failure represents a
breach capable of remedy, the following shall apply:
(a) The Secretary shall give notice in writing to the Company
specifying with reasonable detail the contravention or failure
complained of together with details of the date and form in
which the Secretary became aware of the same;
(b) If the Company fails to remedy the contravention or fails to
cease the contravention or failure (as the case may be) within
ninety days of receipt of the notice referred to in the
preceding paragraph (a), then with the approval of the
Minister the Secretary by notice in writing under its common
seal to the Company may determine this Agreement.
(2) If the Company contravenes or fails to comply with the provisions
of this Agreement in circumstances where in the reasonable
opinion of the Secretary such breach is not capable of being
remedied, the following shall apply:
(a) The Secretary shall give notice to the Company specifying
with reasonable details the contravention or failure
complained of together with details of the date and form in
which the Secretary became aware of the same and requiring
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
20
it forthwith to desist from repeating the contravention or
failure;
(b) If within a period of two years from the service of the
aforesaid notice the Company has repeated the breach
complained of, then with the approval of the Minister the
Secretary by notice in writing under its common seal may
determine this Agreement.
(3) Notwithstanding sub-clauses (1) and (2) of this Clause 28 if the
Company—
(a) fails to complete any of the investment programmes as
contained in the First Schedule of the Agreement within the
times specified therein or within any extension of time
granted to the Company by the Secretary;
(b) is the subject of an order made or a resolution passed or a
petition presented or an application made for the winding up
or dissolution without winding up of the Company (except
for the purpose of reconstruction or amalgamation with the
consent in writing of the Secretary first had and obtained) or
if any person enters into possession of the property of the
Company or any part thereof or if a receiver or receiver and
manager of the Company's undertaking or assets or income or
any part thereof shall be appointed by any person;
(c) enters into any scheme or arrangement for the benefit of its
creditors generally or any of them or any class of them which
has not been satisfied in full within sixty days or if an
application is made to any court for an order summoning a
meeting of the creditors of the Company pursuant to the
Corporations Law;
(d) ceases to carry on the industry at the sawmilling complex
referred to in the First Schedule;
then with the approval of the Minister the Secretary by notice in
writing under its common seal may in its absolute discretion
determine this Agreement.
29. (1) The Secretary and the Company may from time to time by
agreement in writing amend this Agreement by such additions
deletions and variations of matters of details as may be necessary
or desirable to facilitate the carrying on of the industry.
(2) The Secretary and the Company may with the approval of the
Minister determine this Agreement upon such terms as they deem
fit.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
21
30. Notwithstanding anything in the Forests Act and the Conservation,
Forests and Lands Act the Company shall not be required to obtain any
lease licence permit or authority beyond this Agreement to take
softwood sawlog as provided in Clause 12 hereof.
31. (1) In the last three years of this Agreement the Secretary shall if the
Company seeks a further Agreement to assure to it supply of
softwood sawlog for the continuance and/or expansion of the
industry investigate the development of the industry and if
satisfied that the Company needs to have supplies of softwood
sawlog assured to it by a further Agreement and taking into
account the performance of the Company under the Agreement
and the Company not being at the time in breach of any of its
obligations under the Agreement enter into negotiations with the
Company for that purpose.
(2) If a further Agreement has been agreed upon and executed the
Secretary shall (if necessary) recommend to the Minister that a Bill
be introduced into the Parliament of Victoria as soon as possible to
ratify validate approve and otherwise give effect to it.
32. The Minister approves this Agreement.
Sign and Seal
In witness whereof the parties hereto have executed as a deed this Agreement
the day and year first before written.
Signed and sealed and delivered by the Honourable, the
Treasurer in the presence of:
PETER COATMAN ALAN STOCKDALE L.S.
Signed and sealed and delivered by the Honourable, the
Minister for Natural Resources in the presence of:
RAY PAGE GEOFF COLEMAN L.S.
The common seal of Secretary to the Department of
Conservation and Natural Resources was hereunto affixed in the
presence of:
K. J. WAREING ALAN THOMPSON L.S.
The common seal of S.E.A.S Sapfor Limited was hereto affixed
in accordance with the Articles of Association of the Company
in the presence of:
A. de BRUIN, Director
D. S. KERR, Secretary
L.S.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
22
FIRST SCHEDULE
INVESTMENT PROGRAMMES TO BE UNDERTAKEN BY S.E.A.S.
SAPFOR LIMITED
(1) The Company undertakes covenants and agrees to:
(a) establish complete and commission by 31 July 1994 within the
Portland Softwood Management Area, State of Victoria a new
softwood sawmilling complex capable of processing a minimum
of 180,000 cubic metre of softwood sawlog per annum; and
(b) to install and commission in the complex by 31 January 2000
ancillary equipment and technology to further value add the sawn
product for either the domestic or export market.
(2) The sawmilling complex is to be developed substantially in accordance
with the information provided in the Expression of Interest, as modified
in the document dated 1 August 1989 titled "Preliminary Design and
Financial Statement" and further information provided to the Secretary
for final approval.
(3) The information provided by the Company and accepted by the
Secretary as adequate shall take effect to amend supplement and vary
the Expression of Interest and Preliminary Design and Financial
Statement, and together with the Expression of Interest and Preliminary
Design Statement shall constitute the final proposal ("the Proposal") for
the development of the sawmilling complex.
(4) The development of the sawmilling complex undertaken by the
Company must be in substantial accordance with the Proposal provided
that the Company may submit amendments to the Proposal to the
Secretary for approval by the Secretary, which approval may be granted
or withheld in the sole discretion of the Secretary.
(5) The security referred to in the Memorandum of Understanding shall be
returned to the Company on the day that the Act of Parliament which
ratifies the Agreement receives the Royal Assent.
(a) In its operations the licensee shall follow each plan of utilisation or
modified plan, and shall ensure forest operations are confined to
the area of supply and are conducted in accordance with
specifications operational procedures and prescriptions as directed
by the Secretary.
(b) From time to time during this licence, the Secretary or a forest
officer shall specify whether timber to be taken by the licensee
shall be taken from trees to be felled by the licensee or shall be
taken from timber produced or to be produced by the Secretary or
others. Any timber produced by the licensee from trees felled by or
on behalf of the licensee may be directed by the Secretary for
supply to others.
(c) The Secretary or a forest officer may also specify any or all of—
(i) what trees shall be felled by the licensee;
(ii) the kinds of timber which may be taken by the licensee;
(iii) from what places the licensee shall take timber produced or
to be produced by the Secretary or others.
Operational
(a) The licensee shall comply with any lawful directions given by a
forest officer for the purposes of this licence.
(b) The licensee shall carry out, at the cost of the licensee such post
logging rehabilitation works during and on completion of a forest
operation as directed by a forest officer. Where two or more
licensees undertake joint logging operations the Secretary may
require those licensees to lodge joint security to provide for
reasonable costs of post logging rehabilitation should the
contractor(s) engaged by those licensees fail to undertake post
logging rehabilitation works as directed by a forest officer. Work
performed as directed by a forest officer in additional to that
specified in any applicable code of practice or licence conditions
shall be reimbursed to the licensee by the Secretary.
(c) The Secretary will establish and maintain a network of major
extraction roads within State forest to facilitate logging during
typical seasonal conditions. The licensee may be required to
construct and maintain such major extraction roads as may be
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
24
agreed upon between the licensee and the Secretary. Reasonable
costs of such work shall be reimbursed to the licensee by the
Secretary.
3. (a) All persons employed by the licensee to obtain forest produce
under the authority of this licence shall be licensed by the
Secretary to operate in State forests.
(b) The licensee shall ensure that each person employed by the
licensee in cutting trees and taking timber under this licence is—
(i) licensed for the particular operation or operations for which
the person is employed or engaged under an approved
training scheme;
(ii) properly equipped with all requisite safety equipment; and
(iii) properly supervised to ensure compliance with proper
operational procedures.
Royalty, Roading Charge, and Production Charge
4. Royalty, roading charge, and production charge shall be determined by
the Secretary from time to time and paid by the licensee to Secretary
pursuant to the licence. The Secretary shall advise the licensee in
writing of such royalty, roading charge, production charge no less than
14 days prior to the application of such rates and charges in accounts
issued under the provisions of Condition 8 hereof.
5. Royalty, roading charge, and production charge payments shall be
calculated on the kind and quantity of timber taken. Measurement of the
quantity of timber shall be made in such a manner as is determined by
the Secretary and at such locations as are indicated by the Secretary.
If the licensee considers that the defect allowances, measurements or
log grades recorded in respect of any particular log are incorrect, the log
concerned may be set aside for inspection by a forest officer, whose
decision shall be final. No additional allowance shall be given if sawing
operations have been commenced on that log.
6. Royalty, roading charge, and production charge shall be charged on all
timber taken under this licence. Where in the opinion of a forest officer,
timber which the licensee is authorised to take under this licence
remains in any tree felled by or on behalf of the licensee, royalty,
roading charge, and production charge may be charged on such timber
at rates applicable to the kind or kinds of the timber not removed and
the quantity of timber equivalent to that remaining in the trees shall be
included in the quantity taken pursuant to this licence.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
25
7. Royalty, roading charge, and production charge shall be subject to
variation at any time:
(a) Variation in individual rates may be made on account of a change
in any of the factors used in the determination of that rate;
(b) A general review shall take place annually, and shall reflect—
(i) changes in the costs of production as reflected in commercial
accounting systems developed by the Secretary;
(ii) utilisation standard for various species and grades of timber;
(iii) market prices for timber products; and
(iv) the findings of timber pricing studies.
8. (a) Account for royalty, roading charge, and production charge shall
be issued monthly.
(b) An account issued for royalty, roading charge, and production
charge is due for payment immediately it is rendered and becomes
overdue if not paid by thirty (30) days from the date the account is
rendered.
(c) If royalty, roading charge, and production charge is not paid after
becoming overdue the licensee shall pay interest on the sum due
but unpaid, from the date that sum became overdue at the rate for
the time being applicable under Section 30 of the Conservation,
Forests and Lands Act 1987.
(d) If an account remains overdue for more than 14 days then the
Secretary may direct by notice in writing to the licensee that no
further timber shall be taken on credit by the licensee under this
licence until the outstanding amount has been paid in full.
Fire
9. For the purpose of ensuring, so far as possible, the availability of timber
which is permitted to be taken by the licensee, the licensee shall—
(a) take all reasonably practicable action to avoid the occurrence of
any fire which may occur within the area of supply or adjacent to
the area of supply and for the purpose of suppressing any fire
which may occur;
(b) if called upon by the Secretary or any forest officer the licensee
shall make available all assistance in the form of personnel, plant
and equipment, to the Secretary for the purpose of suppressing any
fire which may occur in the area of supply or adjacent to the area
of supply;
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
26
(c) the licensee shall free any contractor and any or all of the
personnel, plant or equipment of such contractor engaged by the
licensee from all contractual obligations towards the licensee for
use by the Secretary for the purpose of fire suppression;
(d) except as hereinafter provided, the Secretary shall reimburse the
licensee for reasonable costs in making any personnel, plant or
equipment available to the Secretary for the purposes of fire
suppression. The rate of reimbursement to be paid by the Secretary
shall be based upon a schedule of rates which shall be revised
annually by the Secretary;
(e) the Secretary shall indemnify the licensee for loss incurred with
respect to any personnel, plant or equipment while engaged in fire
suppression including associated travelling. Without affecting the
generality of the foregoing, such loss shall include—
(i) any claim for compensation or damage to equipment by
employees or contractors made available by the licensee due
to accident resulting from such fire suppression activities;
(ii) any insurance premium increase which results from claims
made due to loss or damage suffered during such fire
suppression activities, provided such increase is clearly
related to a particular such activity and that alone;
(f) the Secretary shall not be liable to pay compensation to the
licensee for any loss of production or profit occasioned by the
licensee making available its employees, plant or equipment for
fire suppression;
(g) no compensation or reimbursement shall be made by the Secretary
to the licensee with respect to a fire when in the opinion of the
Secretary there was sufficient evidence to establish beyond
reasonable doubt that the fire was knowingly or negligently lit,
caused or maintained by the licensee or any of its employees or
contractors in the course of their employment or contractual
obligations;
(h) no compensation or reimbursement shall be made by the Secretary
to the licensee for any loss or damage caused by any fire which
breaks out within 800 metres of its logging operations or sawmill
within the Fire Protected Area unless the Secretary is satisfied that
the licensee or any of its employees on being informed or on
becoming aware of the fire took prompt and effective steps to
engage in fighting the fire;
(i) reimbursement made to the licensee by the Secretary under sub-
section (d) hereof shall be made within 30 days of the last day of
the month of supply of the service.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
27
Other Contracts
10. The licensee shall include in every contract made by it with a contractor
for cutting trees and/or taking away of timber for the purposes of this
licence, Clauses which incorporate similar obligations to those referred
to in Clauses 1 (a), 2 (a), 2 (b), 3 (a), 3 (b), and 9 as if the contractor
were the licensee.
Securities for Monies Outstanding
11. The Company shall lodge with the Secretary each year a security as
prescribed by the Secretary but such prescription shall be no more
onerous on the Company than those the Secretary has applied to others
throughout the State of Victoria in corresponding circumstances.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
28
THIRD SCHEDULE
CODE OF PRACTICE
MEASURING AND ALLOWING FOR DEFECT SOFTWOOD
SAWLOG
PORTLAND SOFTWOOD MANAGEMENT AREA
This code is intended to cover—
(a) tree lengths, trimmed and headed off but not crosscut to long lengths;
(b) logs cut to length for cartage.
In reference to (b) above, it is assumed that some of the defects present in
tree lengths will be docked out by judicious crosscutting into log lengths for
cartage.
Measurement and preparation of softwood sawlog shall be made at such
locations as determined by the Secretary and shall be made in such a
manner as determined by the Secretary.
All measurements shall be taken under bark unless specified otherwise
or inconsistent with the Agreement hereto.
An allowance of 10 cm for all recorded lengths shall be given for cross
cutting.
Diameters shall be recorded to the backward whole centimetre.
In determining the inclusion of defect, or supervising the docking out of
defect, it should be assumed that a wide range of log lengths is
acceptable to the sawmiller irrespective of the log lengths actually cut.
"Wide range" in this context means 3⋅0 metre and up but may also
include lengths shorter than 3⋅0 metre in every case where it is the
normal practice of the particular Licensee to cut short lengths for any
purpose.
Allowance shall not be given for falling or snigging damage except
where in any particular case the forest officer is satisfied that such
damage was completely unavoidable.
Allowance for blue stain, fire damage, hail damage, sirex treatment
etc., shall only be made on specified approval from the Director
General.
Sch.
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
29
8. Where a fork occurs the section of the tree affected by twin heart and
bends in the limbs at their junctions with the trunk shall be allowed for.
The limbs (if merchantable) of the tree above and the bole below the
defective section shall be measured as it they were separate trees.
9. Knots exceeding 75mm in diameter, measured across the shorter axis,
shall be subject to allowance. The allowance to be given shall be
determined by multiplying the length of log affected (angular projection
of the knot into the log) by the proportion of the cross-section of the log
affected and expressing the result as a length allowance to the nearer
0⋅1 metre.
10. An allowance of the full length affected shall be given where two or
more whorls of cone holes occur within any 0⋅9m length of log.
For the purpose of this Clause whorl of cone holes means three or more
cone holes within 0⋅1m length of log.
11. Miscellaneous defects subject to allowance are:
(i) Twisted stem and break resulting them stem. The allowance shall
be the length of log visibly affected.
(ii) Rot, dry side, fire scar and previous mechanical damage. The
allowances shall be determined by multiplying the length of log
affected by the average cross sectional area of the log affected and
expressing the result as a length allowance to the nearer 0⋅1 metre.
═══════════════
Sch.
General Information
Minister's second reading speech—
Legislative Assembly: 24 April 1993
Legislative Council: 12 May 1993
The long title for the Bill for this Act was "A Bill to ratify an agreement with
S.E.A.S. Sapfor Ltd and for other purposes."
The Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993 was assented to on
25 May 1993 and came into operation on 25 May 1993.
Endnotes
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
31
2. Table of Amendments
There are no amendments made to the Forests (S.E.A.S. Sapfor Ltd
Agreement) Act 1993 by Acts and subordinate instruments.
Endnotes
Victorian Legislation and Parliamentary DocumentsAct No. 32/1993
Forests (S.E.A.S. Sapfor Ltd Agreement) Act 1993
32
3. Explanatory Details
No entries at date of publication.
Endnotes