MINING CLAIM LEASES.

New Zealand Herald, Volume LXIV, Issue 19808, 1 December 1927, Page 14

MINING CLAIM LEASES.

OBJECTION TO CONDITIONS. PROTEST BY APPLICANT. MINISTER'S ACTION CRITICISED. [BY TELEGRAPH. —OWN CORRESPONDENT. 1 WHANGAREI, Wednesday. When The Warden's Court opened before Mr. F. H. Levien, S.M., yesterday, Thomas A. Black was called in respect of an application for a mining lease for a Cinnabar claim comprising about 63 acres, in the Puhipuhi district. Certain extra conditions had been appended, to the agreement before its return from the Minister's office and to these Mr. Black took strong exception. The Minister consented to the application subject to the following conditions:— (a) That the licensee shall transmit quarterly to the inspector of mines for the district a statement of the work done during the preceding three months, the cost thereof, and the results obtained; (b) that the licensee shall not assign or underlet or otherwise part with the possession of or Riant or agree to grant any option in respect of any interest in this licence without first obtaining the written consent of the Minister of Mines: (c) that in the event of the licensee failing to observe and carry out the obligations imposed on him by clause 3 of the third schedule to this licence within a period of 12 months from the date hereof this consent shall be deemed to bo null and void. Alleged Effect of Conditions. Mr. Black read a lengthy statement and mentioned that he took particular exception to the second clause. In the circumstances he could not and would not have anything further to do with the lease. "Regarding the conditions imposed by the Minister of Mines on my application for a mineral licence, having no right of appeal," said Mr. Black, "I would point out that section 178 of the Mining Act, 1926. states that every mining privilege is a chattel interest and may be sold and otherwise dealt with* as fully as a chattel interest in land, subject to the provisions of the Act. Each and every one of the conditions of section 178 is prohibited by tho Minister's conditions. "It was certainly never intended when power was given to the Minister to impose such conditions as he thinks fit, that this power was given him to override a main section of tho Act itself. The Minister has abrogated one section. Ho can therefore abrogate any section or number of sections." Statement by Warden. The warden said tins licence had as a matter of fact been approved by the Minister subject to certain conditions, as he was entitled to impose. Tlie applicant had a certain amount of justification for what he had paid, and in the circumstances it was diflicult to know just what to say A definite mineral licence could bo placed on tho register and after 12 months it could be deemed not to be on the register at all. If the merest detail were omitted tho licence became null and void, which meant that the holder must havo a thorough understanding in detail and be able to interpret the Mining Ac.t. These conditions only came out in 1926 and might have a very far-reaching effect, concluded the warden. When the next case was called, Mr. W A. Carruth, on behalf of the client, took exception to the amount of fees and other charges payable on a lease since the new regulations came into force. lie contended that a most emphatic protest should be registered as the conditions were preventing people of small means from prospecting, and so were holding back the development of the district. The warden said these matters were not determined any longer in the Warden's Court but in the Minister's office.