WATER POWER

New Zealand Times, Volume XXXI, Issue 6995, 8 December 1909, Page 4

WATER POWER

DETAILS OF THE PIONEER LICENSE. WAlffi COMPANY'S AGREEMENT . WITH THE GOVERNMENT. < RIGHT TO PURCHASE THE i UNDERTAKING. j Fall particulars of the license grant- i cd by tho Government to tlic Waihi Gold" Mining Company, Ltd., to util- . iso water-power from tho Wnikato river were given to a "New Zealand Times'' representative by tho Hon. K. McKenssi© (Minister of Public Works), who oonduoted the negotiations on behalf of the Government. Tho terms of tho license indicate that the State is fully safeguarded against a merely speculative attempt to control tho power, and that at any time the generating plant and other works may bo taken over from the licensees. The salient points of this pioneer agreement for the utilisation of New Zealand's great water-power resources are herewith given in detail. THE AREA OF SUPPLY. The company is given authority to dovclop 10,000 horse-power for genorating electricity which shall bo used solely for mining, lighting, and manufacturing purposes within.an area, including Thames and the East Coast from a point opposite that town to Tauranga harbour (.but not including the latter town), thence running south to include Putaruru. _ thence west to a point south of Kihikiki, and north to Thames, tho irregular parallelogram including on its western sido the-towns of Ohaupo and Hamilton. The sito of the generating station is to bo on the east hank of the Waikarto at Horabora falls. PRICE FOR THE POWER. The rent payable is at the rate of 3d per. horse-power per month, cal dilated upon 10,000 horse-power, less 20 tier cont., to he paid in advance half-yearly, but if it be proved to the satisfaction of the Minister that at any time the water at the headworks is incapable of developing the full amount of the power named, tho Minister may allow a corresponding reduction in rent. But it is also provided that if -the company sells electrical energy for any purpose other than mining, an additional 3d per horse-power per month is payable for tho energy so used. To enable this to be ascertained, tbo licensee shall allow any authorised Government officer.to oxamino tho bookg ami records relating thereto, and to instal meters for gauging tho quantity of electrical cnorgy thus sold. Clause 5 has an important bearing upon the extension of the company's rights. It states that tho licensee tfliall .have tho right to apply for, and to obtain at tho same rental per horse power, any further water-power available, provided that no other person has in the meantime applied for or boon granted the right to uso it, and provided also that if alterations are required to tbo hoadworks for this purpose, plans and specifications must bo submitted for the .Minister's approval " FORTY-TWO YEARS' RIGHTS. The period of tho license and any /oxtonsion thereof if granted is for forty-two years from December Ist, 1901), without right of renewal. The licenseo may, if tho undertaking is found to be unprofitable, surrender tho license upon giving six months' notice and fulfilling all conditions up to tho expiry thereof. All works and plant constructed within or upon the bod of the Waikato river in pursuance of tbo licenso will them revert to the Crown, and if tho licensee fails to ' remove all removable equipmont wbioh stand* upon Crown land or wtblio reserves within twelve months, it shall, without compensation, become tho property of the State. STATE MAY RESUME. Poivor is given tbo Government tc revoke the licenso upon failure to carry out the undertaking or fulfil the conditions. A breach of the conditions may be met by fine not exceeding £IOO per week during its continuance. Within eighteen months from date, and before commencing the construe tion, full plains of the installation must be submitted, to the Minister, and within three months of tihe first development of electric current at tbo generating station, full detailed draw* ings of the machinery must be sup plied. TERMS OF RESUMPTION. Tho right is reserved to the State to purdhase the whole undertaking at a price to be mutually agreed upon, or to be fixed by arbitration at any time, goodwill not to be taken into consideration. It is provided, howover, that in this event the licensee ir.ay, if desired, continue to be supplied with electrical power at th& mines equal in quantity to that which the licensee has been using on tha average for twelve months immediately preceding the purchase, the charge not to exceed the rate of cost of production by the licensee, plus 5 per cent, interest on the amount of the purchase money paid by the State. The maximum rate at which electrical power may be sold by the licensee is £9 per horse power per annum, or 3d per unit. The £SOO deposit lodged as a guarantee of good faith is to be returned when tho Minister is satisfied that permanent work to r the extent of £IOOO has been carried out. Tho power transmission lino will run in a nortli-nortb-eaßterly direction and parallel -with the Rotorna railway between Mangaw-hara and Jlatanrata stations. As the railway then takes a westerly bend, the power lino will branch off to the north, following an almost straight track overland to the company's mine and reduction workts at Waihi.