REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1940.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the National Security Act 1939-1940.
Dated this first day of August, 1942.
GOWRIE
Governor-General.
By His Excellency’s Command,
JOHN A. BEASLEY
for and on behalf of the Minister of
State for Defence.
National Security (Petroleum Products Distribution) Regulations.
Citation.
These Regulations may be cited as the National Security (Petroleum Products Distribution) Regulations.
Commencement
These Regulations shall come into operation on a date to be fixed by the Minister by notice published in the Gazette.
Administration.
These Regulations shall be administered by the Minister of State for Supply and Development.
Definitions.
In these Regulations, unless the contrary intention appears—
“member of the Pool” means a subscriber to the Memorandum of Association of Pool Petroleum Proprietary Limited;
“Pool Agreement” means the Agreement a copy of which is set forth in the Schedule to these Regulations;
“Pool Petroleum Proprietary Limited” means the company registered in the State of Victoria under that name.
Pool Agreement.
5.—(1.) Notwithstanding anything contained in any other law, the Pool Agreement and the incorporation and registration of the Pool Petroleum Proprietary Limited are hereby declared to be legal and valid for all purposes.
(2.) A member of the Pool shall not contravene or fail to comply with the provisions of the Pool Agreement.
* Notified in the Commonwealth Gazette on 1st August, 1942.
4615.—Price 8d.
Distribution of petroleum products.
6.—(1.) A person, other than the Pool Petroleum Proprietary Limited, shall not distribute, sell or dispose of, by wholesale, any prescribed products, and that Company shall not, except in accordance with the provisions of the Pool Agreement, distribute, sell or dispose of, by wholesale, any prescribed products.
(2.) For the purposes of this regulation, the expression “prescribed products” means any of the following commodities, namely:—
(a) Motor spirit other than aviation gasoline, benzoline, solvents and similar products not used for automotive purposes, but including power alcohol, benzole and spirit produced locally from indigenous flow oil and shale oil;
Section 1 - National Security (Petroleum Products Distribution) Regulations - National Security (Petroleum Products Distribution) Regulations | Zoe
(b) Power kerosene as from time to time defined in Customs Department General Orders;
(c) Lighting kerosene as from time to time defined in Customs Department General Orders;
(d) Distillate and gas oil used for stationary engine, marine engine and automotive purposes and any other purposes except bunkers;
(e) Diesel and furnace oil for any purpose other than for ships’ bunkers and other than oil cargoes sold on a c.i.f. basis;
but does not include—
(f) Quantities of any such commodities delivered for shipment to any place outside the Commonwealth other than quantities so delivered to the order of the Commonwealth or of any country allied with His Majesty in the present war.
THE SCHEDULE. Reg. 4.
An agreement made the ninth day of July, One thousand nine hundred and forty-two Between: Alba Petroleum Company of Australia Proprietary Limited of the first part, Atlantic Union Oil Company Limited of the second part, Australian Motorists Petrol Company Limited of the third part, Caltex Limited of the fourth part, Caltex Queensland Proprietary Limited of the fifth part, Independent Oil Industries Pty. Limited of the sixth part, Independent Oil Industries Pty. Ltd. of the seventh part, Neptune Oil Company Proprietary Limited of the eighth part, Hamilton Morton Howard Sleigh trading as H. C. Sleigh of the ninth part, The Commonwealth Oil Refineries Limited of the tenth part, The Shell Company of Australia Limited of the eleventh part, Vacuum Oil Company Proprietary Limited of the twelfth part and Edward James Hamilton of 46 Queen Street Melbourne Solicitor on behalf of the Company hereinafter mentioned of the Thirteenth part Whereas the parties of the first twelve parts (each of whom is hereinafter referred to as “a member”) severally carry on (inter alia) the business of importers and distributors of liquid fuel And whereas the Commonwealth Government of Australia has through the Minister of State for Supply and Development requested the members to pool their resources in the national interests And whereas the Company to be called “Pool Petroleum Proprietary Limited” (hereinafter referred to as “Pool”) is about to be formed under the Companies Act 1938 having for its objects among other things the adoption of this Agreement Now this agreement witnesseth that each party to this Agreement as to such party’s respective acts and deeds but not further or otherwise hereby agrees with the other parties to this Agreement jointly and severally as follows :—
Each member shall subscribe to the capital of Pool to the extent hereinafter mentioned in regard to such member and shall appoint Pool such member’s sole agent for the purpose of selling disposing of and distributing such member’s
prescribed products subject to the terms and conditions hereinafter stated from the date when Pool shall be ready to commence business to and until the cessation of active hostilities in which any Australian Forces are engaged in the present war with Germany Italy and Japan or any one or more of them and thereafter until this Agreement shall be terminated by any member giving to each of the other members six months’ notice in writing provided that no such termination shall take effect before the expiration of six months after such cessation of active hostilities.
With a view to avoiding unfair competition in the period of demobilization when members’ staff would not have returned to their services each member covenants with every other member to give for a period of one year from the date of such termination to every such other member every possible assistance with the object of enabling every such other member in each State Marketing Area to obtain and retain through its own marketing organization its quota of prescribed products. If any member has not in any period of three months ending the thirty-first day of March, the thirtieth day of June, the thirtieth day of September or the thirty-first day of December during such year obtained its quota of sales of any prescribed product in any State Marketing Area through its own organization (such member being hereinafter referred to as an “undertrader”) each and every one of the members who has sold quantities of such prescribed product in such State Marketing Area in excess of its quota (hereinafter referred to as an “overtrader”) will purchase and take delivery from such undertrader the quantities of the prescribed products sold by the overtrader in excess of such overtrader’s quota such quantities to be delivered duty paid in bulk ex undertrader’s ocean terminal in the State Marketing Area in which the overtrading occurred. The overtrader will pay the undertrader for such deliveries the recognised net wholesale price per gallon ruling at the ocean terminal or terminals concerned for each of the prescribed products oversold (which in the case of motor spirit will be the net price to reseller company-owned pumps) less the sum of twopence per gallon in the case of motor spirit, power kerosene and lighting kerosene and one penny per gallon in the case of distillate and gas oil and ten shillings per ton in the case of diesel and furnace oil. For the purpose of assessing the amount of overtrading or undertrading members will submit duly audited statements of sales to an independent Chartered Accountant appointed by a memorandum in writing signed by or on behalf of a three-fourths majority of members and within sixty days of the termination of each three monthly period on the direction of such Chartered Accountant overtraders will take delivery from undertraders the required quantities and make payment on delivery for same at the price determined in this clause.
In this Agreement—
“Prescribed products” means the products defined below and includes quantities of such products used by Pool and the members in its and their own businesses other than quantities used in the manufacture or blending of products not being prescribed products but does not include quantities of such products delivered for shipment to any territory outside State Marketing Areas of the Commonwealth other than quantities of such products delivered for shipment to any territory outside State Marketing Areas of the Commonwealth to the order of the Government of the Commonwealth or any other Allied Country which quantities are included in the expression “prescribed products”.
“Motor spirit” which description in addition to all imported and locally refined motor spirits includes all motor spirit produced locally from indigenous flow oil and shale oil also power alcohol benzol and other substitute liquid fuels but does not include aviation gasoline benzoline solvents and similar products not used for automotive purposes.
“Power kerosene” which description means power kerosene as from time to time defined in the Customs Department General Orders.
“Lighting kerosene” which description means lighting kerosene as from time to time defined in the Customs Department General Orders.
“Distillate and gas oil” which description means distillate and gas oil used for stationary engine marine engine and automotive purposes and any other purposes except bunkers.
“Diesel and furnace oil for inland purposes” which purposes include all purposes other than ships bunkers and oil cargoes sold on a C.I.F. basis.
“Overseas receiving terminals” mean Bulk Installations situated on the seaboard of the Commonwealth for the purpose of receiving bulk cargoes of prescribed products from tankers arriving from overseas.
“State Marketing Area” means an area in which any member or members has or have immediately prior to the execution of this Agreement been accustomed to sell dispose of or distribute prescribed products. The name and boundaries of each Marketing Area are set forth in maps signed by or on behalf of each member entitled to a quota in such Marketing Area.
“Quota” means the share of each member of the total net sales of Pool of each prescribed product in each State Marketing Area as shown in the First Schedule attached hereto.
“Net sales” includes quantities delivered by Pool to members for use in their own businesses other than quantities used in the manufacture or blending of products not being prescribed products. Such deliveries will be sold at the lowest price prevailing at point of delivery for any buyer but excluding any special price to the Government for reserve storage.
The share capital of Pool will be Five thousand pounds in five thousand shares of One pound each. Any further finance required for the operation of the Company will be furnished by loans from shareholders in proportion to their respective motor spirt quotas, and for this purpose the State quotas will be amalgamated into a Commonwealth wide figure on the basis of 1941 sales. Pool will so operate as to make no profit. The members whose names are hereunder set forth will take the number of shares in the capital of Pool set opposite their respective names—
Alba Petroleum Company of Australia Proprietary Limited........................
250
Atlantic Union Oil Company Limited......................................
500
Australian Motorists Petrol Company Limited................................
Neptune Oil Company Proprietary Limited................................
1
„
Hamilton Morton Howard Sleigh......................................
1
„
The Commonwealth Oil Refineries Limited...............................
2
„
The Shell Company of Australia Limited.................................
1
„
Vacuum Oil Company Proprietary Limited................................
1
„
The Board of Directors of Pool will be appointed as follows:—The members whose names are hereunder set forth shall appoint the number of Directors set opposite their respective names and each such Director shall have the number of votes set opposite his respective appointor’s name—
<table cellspacing="0" cellpadding="0" style="width:100%; border-collapse:collapse"><tbody><tr style="height:25.3pt"><td style="width:62.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:50.4pt; text-indent:-21.6pt; font-size:10pt"><span style="font-family:'Times New Roman', serif">Alba Petroleum Company of Australia Proprietary Limited</span><span style="width:131.14pt; text-indent:0pt; font-family:'Lucida Console', monospace; display:inline-block">.....................</span></p></td><td colspan="5" style="padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">One Director with 1 vote</span></p></td></tr><tr style="height:1pt"><td style="width:62.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:50.4pt; text-indent:-21.6pt; font-size:10pt"><span style="font-family:'Times New Roman', serif">Atlantic Union Oil Company Limited</span><span style="width:216.66pt; text-indent:0pt; font-family:'Lucida Console', monospace; display:inline-block">...................................</span></p></td><td style="width:10.26%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:8.32%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.7%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.38%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:4.78%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td></tr></tbody></table>
<table cellspacing="0" cellpadding="0" style="width:100%; border-collapse:collapse"><tbody><tr style="height:23pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="margin-left:28.8pt; text-align:left; font-size:10pt"><span style="font-family:'Times New Roman', serif">Australian Motorists Petrol Company Limited</span><span style="width:52.27pt; font-family:'Lucida Console', monospace; display:inline-block">........</span></p></td><td colspan="6" style="padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">One Director with 1 vote</span></p></td></tr><tr style="height:1pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:28.8pt; font-size:10pt"><span style="font-family:'Times New Roman', serif">Hamilton Morton Howard Sleigh</span><span style="width:103.66pt; font-family:'Lucida Console', monospace; display:inline-block">.................</span></p></td><td style="width:9.46%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.88%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.64%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:4.48%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif; font-variant:small-caps">1</span></p></td><td style="width:4.9%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.06%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td></tr><tr style="height:1pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:28.8pt; font-size:10pt"><span style="height:0pt; text-align:left; display:block; position:relative; z-index:0"><img src="image.001.png" width="7" height="32" alt="" style="margin-top:0.12pt; margin-left:243.82pt; position:absolute"></span><span style="font-family:'Times New Roman', serif">Independent Oil Industries Pty. Ltd. and Independent Oil Industries Pty. Limited —jointly</span></p></td><td style="width:9.46%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.88%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.64%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:4.48%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:4.9%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.06%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td></tr><tr style="height:1pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:28.8pt; font-size:10pt"><span style="font-family:'Times New Roman', serif">Neptune Oil Company Proprietary Limited</span></p></td><td style="width:9.46%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.88%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.64%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif; font-variant:small-caps">„</span></p></td><td style="width:4.48%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:4.9%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.06%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td></tr><tr style="height:1pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:50.4pt; text-indent:-21.6pt; font-size:10pt"><span style="height:0pt; text-align:left; display:block; position:relative; z-index:1"><img src="image.002.png" width="7" height="28" alt="" style="margin-top:3.92pt; margin-left:243.82pt; position:absolute"></span><span style="font-family:'Times New Roman', serif">Caltex Limited and Caltex Queensland Proprietary Limited—jointly</span></p></td><td style="width:9.46%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">two</span></p></td><td style="width:6.88%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.64%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:4.48%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:4.9%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.06%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">each</span></p></td></tr><tr style="height:1pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:28.8pt; font-size:10pt"><span style="font-family:'Times New Roman', serif">The Commonwealth Oil Refineries Limited</span></p></td><td style="width:9.46%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.88%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.64%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:4.48%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:4.9%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.06%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td></tr><tr style="height:1pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:28.8pt; font-size:10pt"><span style="font-family:'Times New Roman', serif">The Shell Company of Australia Limited</span></p></td><td style="width:9.46%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">one</span></p></td><td style="width:6.88%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.64%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:4.48%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:4.9%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.06%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr><tr style="height:1pt"><td style="width:60.56%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="margin-left:28.8pt; font-size:10pt"><span style="font-family:'Times New Roman', serif">Vacuum Oil Company Proprietary Limited</span></p></td><td style="width:9.46%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.88%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.64%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:4.48%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">1</span></p></td><td style="width:4.9%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.06%; padding-right:2pt; padding-left:2pt; vertical-align:bottom"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td></tr></tbody></table>
All resolutions of Directors and Shareholders will require a three fourths majority.
After the date Pool commences business each member will not distribute dispose of or sell any of the prescribed products save through the agency of Pool but will deliver all such products as are under such member’s control in the Commonwealth to Pool on consignment ex importing tanker or ex local refinery in bulk tankage situated at an overseas receiving terminal or bulk tankage situated in a local refinery and used for the purpose of storing prescribed products. Ownership of prescribed products will remain with the member who has imported or refined such products, but will be held under the control and at the call of Pool. Duty primage and wharfage on such prescribed products will be for account Pool, and members delivering ex local refineries will receive from Pool the difference between import duty and excise payable on such quantities delivered. Primage will be payable by Pool to such members in respect of the latter quantities delivered ex local refineries at the average rate paid on the total imports by all members of the prescribed product concerned into the Commonwealth of Australia during the preceding month. Wharfage will be payable by Pool in respect of such quantities delivered ex local refineries at the average rate paid on total imports by all members during the preceding month into the principal port of the State Marketing Area in which the refinery is situated.
Each member will make available to Pool in the manner prescribed in Clause 6 at overseas receiving terminals and refineries situated within any State Marketing Area or Areas quantities of each prescribed product approximately equal to the weighted Commonwealth average of its State quotas of the total quantities so made available in the Commonwealth by all members.
In the event of any member, except in the case of force majeure or other circumstances beyond its control, failing at any time to deliver to Pool stocks of any prescribed product sufficient to supply the Commonwealth weighted average of its State quotas of net sales to such time, such member will from the date of such event to the date when the obligations and benefits of Clause 25 shall be restored as hereinafter mentioned cease to share in the obligations and benefits outlined in Clause 25, and its share will be allocated pro rata to the other members operating in the State Marketing Area or Areas in which such member was operating. From the date such member recommences delivery to Pool the required stocks, the obligations and benefits of Clause 25 will be restored. If the reason for such failure to deliver sufficient stocks to Pool is force majeure or other circumstances beyond the member’s control, Pool will make available on loan to such member from stocks held on consignment from members sufficient stocks for such member’s Pool obligations. The member who obtains such loan shall simultaneously with delivery deposit with Pool a sum equivalent to the C.I.F. and E. cost of the quantity so lent, based on the weighted average C.I.F. and E. cost of the imports into the Commonwealth of such prescribed product by all members during the preceding calendar month. Such deposit will be returned to the borrowing member on the loan of stock being returned to Pool within four months, failing which the transaction will become a purchase by the borrowing member, and the deposit will be paid by Pool to the other members according to their respective quotas in the State Marketing Areas in which the quantities were borrowed, and relative stock accounts of the several members adjusted accordingly.
The respective shares of the several members of the payment of such deposit will be calculated by multiplying each member’s quota of the gallonage or tons concerned by its C.I.F. & E. cost used in originally determining the amount of the deposit and distributing the deposit between the several members in proportion to the respective results of the foregoing calculations.
If the reasons for non-return of the loan within four months are for any cause other than force majeure or other circumstances beyond its control, the borrowing member will promptly pay to Pool any amount by which for the quantity so lent the weighted average C.I.P. & E. cost of the imports into the Commonwealth of such prescribed product by other members in the fourth month after the loan was made exceeds the amount of the deposit above-mentioned and such excess will be distributed to other members in the same way as the deposit.
The members shall appoint a Tankage Sub-Committee. The Sub-Committee hitherto known as the Tankage Sub-Committee of the Petroleum Committee (which Committee consists of representatives of all the members) shall be the first Tankage Sub-Committee under this Agreement. The storage of bulk imports of prescribed products will be arranged by such Tankage Sub-Committee in the bulk tankage of overseas receiving terminals (or in the bulk tankage situated in a refinery and used for prescribed products) of the various members irrespective of the member importing the quantity concerned.
Each member will continue as in the past, to arrange its shipments of prescribed products to Australia and will be responsible for obtaining the necessary licences against which it will make payment for such goods. On the principle that imports will be arranged in accordance with the quotas of respective members, responsibility for such stocks en route to Australia will rest with the individual members who will be responsible for insurance of same, including war risk insurance against losses at sea, and ocean evaporation and leakage losses.
The ownership control and operation of overseas receiving terminals and refineries will remain with the individual members although bulk stocks of prescribed products situated therein will be held by the respective members as agents for Pool, and the bulk storage and facilities incidental to storage and delivery of such will be at the call of Pool. A rental will be paid by Pool to each of the several members for the use of such member’s bulk storage and facilities calculated as follows:—
The total initial capital cost, including land, of all members’ overseas receiving terminals in each State Marketing Area and their storage capacity in Imperial gallons will be ascertained, and the average capital value of such assets per 1,000 gallons of storage capacity calculated. Pool will pay to each member a rental for each 1,000 gallons of storage made available to Pool by such member calculated as follows:—
<table cellspacing="0" cellpadding="0" style="width:88.7%; margin-left:49.5pt; border-collapse:collapse"><tbody><tr style="height:1pt"><td style="width:14.08%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif; font-style:italic">Interest</span></p></td><td style="width:3.88%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif; font-style:italic">@</span></p></td><td style="width:8.36%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">4½%</span></p></td><td colspan="9" style="padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">per annum on such capital cost per 1,000 gallons</span></p></td></tr><tr style="height:1pt"><td style="width:14.08%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif; font-style:italic">Depreciation</span></p></td><td style="width:3.88%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif; font-style:italic">@</span></p></td><td style="width:8.36%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">3%</span></p></td><td style="width:6.26%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:11.16%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:5.28%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:12.44%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.1%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">1,000</span></p></td><td style="width:7.04%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:6.74%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.88%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif"></span></p></td><td style="width:10.8%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td></tr><tr style="height:1pt"><td style="width:14.08%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif; font-style:italic">Maintenance</span></p></td><td style="width:3.88%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif; font-style:italic">@</span></p></td><td style="width:8.36%; padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">1%</span></p></td><td colspan="9" style="padding-right:2pt; padding-left:2pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:'Times New Roman', serif">per annum on such capital cost per 1,000 gallons</span></p></td></tr></tbody></table>
In assessing the capital value of leasehold land such capital value shall be deemed to be the rental of such land capitalised at 4½%. The rental payable to any member in accordance with the foregoing will not cease or be reduced by reason of war damage (as defined by National Security (War Damage to Property) Regulations or any amendment thereof) to such member’s bulk storage.
In the event of any member’s, tankage normally used for the storage of prescribed products being used by the Government of Australia or of the United States of America for the storage of the property of such Government or Governments the rental or similar remuneration received by the member will be paid to Pool for the benefit pro-rata to quotas of all members in the State Marketing Area concerned.
The ownership of all Installations and Depots owned by members other than those covered by the preceding paragraph will remain with respective members but such Installations and Depots will be controlled and operated by Pool. A rental will be paid by Pool to each of the several members for all such Installations and Depots calculated in the following manner:—
Interest at 4½% per annum on initial cost of Installation or Depot inclusive of land.
Depreciation at 4% per annum on initial cost of Installation or Depot exclusive of land.
Maintenance at 1% per annum on initial cost of Installation or Depot exclusive of land.
Municipal and other local rates.
In assessing the capital value of leasehold land, such capital value shall be deemed to be the rental of such land capitalised at 4½%.
War Damage insurance contributions on fixed property and plant will be payable by respective owning members but that on stocks of prescribed products will be paid by Pool as from the first day of January 1943 and recovered from individual members on the basis of their respective quotas. Thus all losses of stock arising out of War Damage, for example, those in a bulk tank in which stocks of more than one member are stored would be a Pool loss and covered by the Government Insurance Scheme. Members having already arranged their War Damage cover for varying periods up to the thirty-first day of December 1942 will be responsible for payment of premiums to cover their stocks up to that date and Pool will reimburse any of this cost relative to the period from commencement of Pool. Ordinary fire insurance on its own property and own stock (whether located on member’s own premises or elsewhere) will continue to be the responsibility of individual members, but losses of stock by fire will be borne by all members in the State Marketing Area concerned in proportion to their respective ownership.
Pool will keep a stock account in quantities only (not value) of each prescribed product held on consignment in overseas receiving terminals and refineries in each State Marketing Area, booking in quantities received from each member and booking out quantities sold ex such terminals and transferred to Pool depots and agencies. These outgoings will be apportioned to members in accordance with their respective quotas. Evaporation, filling and bottoms sludge and water losses and quantities used in the Pool business ex overseas receiving terminals will be apportioned to members on a similar basis. A copy of this stock account will be provided to each member monthly and form the basis of its books of account as regards stocks in overseas receiving terminals.
Pool will keep a stock account in quantities only (not value) of each prescribed product held on consignment in each State Marketing Area covering stocks other than those held at overseas receiving terminals. Quantities received by transfer from overseas receiving terminals will be booked in, and quantities sold evaporation and filling losses and quantities used in Pool business will be booked out and apportioned to members in accordance with their respective quotas. A copy of this stock account will be provided to each member monthly for the purpose of its books of account.
In the stock account of prescribed products held in overseas receiving terminals and refineries Pool will credit each member with the actual quantity held in the tankage of such member at the date of commencement of Pool’s operations. Respective members will be credited or debited, as the case may be, with quantities required to effect the following:—
(a) Settlement between members of all inter-member loans outstanding.
(b) Settlement between members of outstanding deliveries and receipts required as under and overtrading adjustments under agreements operating between members prior to the commencement of Pool.
(c) Adjustment of stocks at Installations other than overseas receiving terminals and refineries and at depots and agents so that members’ ownership of such stocks is in the same proportion as their respective quotas.
(d) Equalization of deliveries of motor spirits to the Commonwealth Government for reserve stock purposes if deliveries for any particular class of reserve stock in a State Marketing Area have not been fully completed in accordance with quotas.
As a result of the foregoing adjustments each member’s property in the total stock of any prescribed product held on consignment by Pool at any time will be the quantity shown to the member’s credit in the Pool Stock Account in respect of overseas receiving terminals and refineries plus a percentage equivalent to the member’s quota of the stocks held at all other Installations and Depots.
For the purpose of reimbursing members for expenses incurred in laying down at country depots and agencies stocks taken over by Pool at the commencement of its operations, Pool will pay to each member a sum calculated in the following manner:—
The differential (bulk or packed) applicable at the respective country depots and agencies for each prescribed product will be multiplied by the relative-gallons taken over from that member by Pool at such points.
From the date of commencement of Pool’s operations Pool, after consultation with members, will appoint its own agents at such points as are considered necessary to supplement the delivery service from Installations and Depots the property of the members. Pool will endeavour to appoint as its agents the ex-agents of the members in proportion to their quotas and the peculiar needs of any particular prescribed product. Until the expiration of a period of twelve months after the termination of this Agreement no member will appoint as its agent any person, firm or company whose agency with another member has been determined pursuant to this clause.
If called upon so to do Pool will store, distribute and deliver as agents for and at the expense of any member any of such member’s products which are not prescribed products.
Rail tank cars will remain the property of the members, but Pool will hire its requirements in numbers as far as practicable in proportion to member’s quotas, subject to cars being available. Members will be responsible for maintaining their cars according to their customary practice. Pool will pay as hire for cars used by it on the following basis:—
<table cellspacing="0" cellpadding="0" style="width:94.92%; margin-left:45pt; border-collapse:collapse"><tbody><tr style="height:1pt"><td colspan="5" style="padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:left; font-size:10pt"><span style="font-family:'Times New Roman', serif">5/- daily for cars up to and including 2,000 gallons capacity.</span></p></td><td style="vertical-align:top"></td></tr><tr style="height:1pt"><td style="width:1.16%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">10/-</span></p></td><td style="width:7.18%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.12%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.04%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td colspan="2" style="padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">over 2,000 gallons capacity and up to and including 6,000 gallons.</span></p></td></tr><tr style="height:1pt"><td style="width:1.16%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">20/-</span></p></td><td style="width:7.18%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.12%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td style="width:7.04%; padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">„</span></p></td><td colspan="2" style="padding-right:2pt; padding-left:2pt; vertical-align:middle"><p style="text-align:center; font-size:10pt"><span style="font-family:'Times New Roman', serif">over 6,000 gallons capacity.</span></p></td></tr><tr style="height:0pt"><td style="width:20.15pt"></td><td style="width:28pt"></td><td style="width:27.7pt"></td><td style="width:27.4pt"></td><td style="width:308.05pt"></td><td style="width:20.85pt"></td></tr></tbody></table>
These charges to apply to every day or part thereof, including Sundays and holidays.
Motor lorries will remain the property of the members but Pool will hire from members the lorries it requires as far as possible in proportion to the respective members’ quotas. Members will be responsible for the maintenance of vehicles loaned by them to Pool and for the payment of the drivers’ wages in respect of such vehicles, but the drivers will be under the control of Pool. Pool will pay as hire for such vehicles the following amounts:—
(i) In accordance with the group classification in the second schedule attached hereto the following hire per mile and per day:—
—
Per Mile.
Per Day.
Group “A”..............
7½d.
17/6
Group “B”..............
6½d.
15/0
Group “C”..............
5½d.
12/6
Group “D”..............
4d.
10/0
Group “E”..............
3½d.
8/0
Group “F”...............
2d.
5/0
Group “G”..............
1d.
3/0
The hire per day will be paid—
(a) Only for such days as a vehicle is operating under the control of Pool;
(b) whether a vehicle is used or not;
(c) only for days excluding holidays.
(ii) The actual amount of drivers’ wages paid.
(iii) Special taxation and fees, such as heavy vehicles licences and State-transport taxation payable in respect of such vehicles (normal registration fees being included in the charge shown in paragraph (i)).
Fuel will be supplied by Pool, and lubricating oil and grease will be purchased by Pool from members for sole use in the vehicles owned by respective members.
Members will pay to Pool cartage on any non-prescribed products carried on behalf of such members at rates to be determined by Pool Head Office.
21. Motor spirit pumps situated with resellers, industrial users and Government and semi-Government bodies will remain the property of the members and be maintained by them at their expense, but all such pumps will be loaned to Pool for its sole use free of charge. At the termination of this Agreement pumps in operation with customers will be allocated by Pool to respective
members in such a manner as to preserve as far as possible the same proportion of numerical representation, having clue regard to location and equitable availability as existed throughout each State Marketing Area at the date of commencement of Pool.
Drums and other packages used for the distribution and/or sale of prescribed products will be purchased by Pool from members in proportion to their respective quotas wherever practicable. Packages will be purchased at cost with the exception of forty-four and twenty-four gallon light and heavy drums which will be taken over on cash deposit at the prices ruling from time to time for delivery to buyers of prescribed products.
23. For the purpose of the operation of Pool a Head Office will be established in Melbourne under a General Manager, and with Accounting and Secretarial Department, Operations Department and Distribution Department. Similarly, Branch Offices will be established under a Manager, and with Accounting, Operations and Distribution Departments in Brisbane, Sydney, Melbourne, Adelaide, Perth and Hobart.
Pool will purchase such goods, engage such services and staff and incur such incidental expenses as are deemed necessary for the distribution and sale of the prescribed products received from the several members, and shall make all payments in respect of such goods, services, &c. The salaries of staff loaned by members will continue to be paid by such members, hut Pool will pay for such services to the several members a standard rate of salary to be determined by Pool in respect of each job classification irrespective of the actual remuneration paid to the person performing such job. Superannuation and Provident Fund payments of such loaned staff will remain the responsibility of the several members. Such loaned staff will be drawn from existing staff of the several members in approximate proportion to their quotas in each State Marketing Area.
Within ten days after the close of each month Pool will render to each member a statement of proceeds of sales of each prescribed product in each State Marketing Area for that month, such proceeds to be allocated to the several members in accordance with their quotas. Wherever possible expenses will be charged to the particular prescribed product concerned and for the purpose of allocating overhead expenses a gallon of motor spirit, power kerosene, lighting kerosene, distillate and gas oil will be equal to one another and to five gallons of diesel and furnace oil, and a ton of diesel or furnace oil will be calculated as 250 gallons. A statement of expenditure actually paid for during the same month will be rendered by Pool by the end of the succeeding month, such expenses to be shown separately for each State Marketing Area and apportioned to the several members in a similar manner to sales proceeds. The balance between such sales proceeds and expenses will be paid to the respective members by the end of the month succeeding that in which the sales were effected. Progress payments will be made as and when funds become available from day to day.
Pool will assume the obligations of the several members to absorb indigenous fuels such as flow oil, shale oil, alcohol and benzol, and will purchase and take delivery of all such quantities as become available.
Pool will sell all prescribed products for cash on delivery or with order except to the Commonwealth and State Governments and quasi-Government bodies.
This Agreement shall not be binding upon the parties executing it until the legality and validity of the Agreement and of the incorporation and registration of Pool have been declared by Regulation under the National Security Act 1939-1940.
Upon the adoption of this Agreement by Pool in such manner as to render same binding on Pool the said Edward James Hamilton shall be discharged from all liability in respect thereof.
If this Agreement shall not be adopted by Pool in the manner aforesaid before the thirty-first day of December 1942 any of the parties hereto may by notice in writing to the other parties determine the same.
The determination of this Agreement under Clauses 29 or 30 hereof shall not give rise to any claim for compensation expenses or otherwise.
In witness whereof the parties hereto have executed these presents the day and year first hereinbefore written.