1921-22 DEPARTMENT OF LANDS AND FORESTS 269 



struction work uninterruptedly until the mills mentioned in the said Agreement 

 (Schedule "B") shall be fully completed, subject to the direction of the Minister 

 of Lands and Forests as to the erection of the paper mill. 



6. And the Company hereby covenants and agrees to indemnify and save 

 harmless the Crown against any and all causes of action, loss, costs, damages 

 or expenses which may be awarded by lawful authority against the Crown in 

 connection with, or by reason of, the development of said water power at White 

 Dog Rapids. 



7. The Company further agrees to reserve such quantities of news print 

 paper as they may be required from time to time so to do by the Minister 

 of Lands and Forests for the purchase by publishers within the Dominion of 

 Canada. 



8. The Crown will presently offer for public competition the pulpwood 

 and timber on an area comprising a part of the English River Watershed and 

 which area is bounded on the West by the boundary of the Province of Manitoba; 

 on the South by the National Transcontinental Railway, on the North by the 

 English River and Lac Seul, and on the East by the Westerly limit of Indian 

 Reserve No. 28 extended north in a straight line to the northerly boundary and 

 south to the southerly boundary of the said area; and the Company will tender 

 for the said area in the terms of the conditions of sale thereof, one of which 

 will be that the timber and pulpwood on the said area will be manufactured 

 at Kenora (including the manufacture into newsprint paper of the pulpwood 

 suitable for that purpose) and if the Company's tender is accepted the Company 

 will enlarge their said mills at Kenora to at least the capacity mentioned in the 

 said Agreement (Schedule "A") and will accept this Agreement as a satisfactory 

 agreement within the meaning of clause (a) of paragraph 1 of the said Agree- 

 ment (Schedule "A") and as a full compliance by the Town of Kenora with its 

 obligations under clauses (ee) and (ff) of the said Agreement (Schedule "A" 

 and the Company will thereupon carry out and perform all their obligations 

 under the said agreement (Scheduel "A") and will further extend the said pulp 

 and paper mills and increase the capacity thereof beyond that called for by 

 the said Agreement (Schedule "A") as they may from time to time be re- 

 quired by the Minister of Lands and Forests to do, having regard to the quan- 

 tity of pulpwood that will be available for the said mills. Provided 

 that if it is ascertained by the Minister of Lands and Forests within 

 three years from this date that there is not sufficient pulpwood and timber 

 on the above described area to operate the said mills in Kenora as set forth 

 in the said Agreement (Schedule "A") he will put up for public competition such 

 an additional area or areas to the north of the English River as will provide the 

 necessary timber and pulpwood for the said purpose, and in the Conditions of 

 Sale thereof it shall be provided that the manufacture thereof shall be in the 

 Town of Kenora. The ascertainment and estimate by the Minister as aforesaid 

 shall be final and conclusive and binding on all parties to this Agreement. 



9. Nothing in this agreement shall affect the application of the provisions 

 of any statute or order-in-council whether now existing or which hereafter may 

 be enacted or made dealing with the regulation, control or inspection of water 

 power and of the use of waters in Ontario. 



10. If the Company fails or neglects to erect, extend and operate the 

 said mills in accordance with the terms of this Agreement, then all rights under 

 this Agreement shall terminate and be forever forfeited. Provided, however, 

 that there shall be no forfeiture or cancellation hereunder for the reason (if 



