80 EEPOET OF THE ^o. 3 



pay one-half the cost and expense of such fire ranging, the other half of such 

 cost and expense to be borne by the Government; 



11. No wood shall be cut under this agreement until after the sum of one 

 hundred thousand dollars shall have been expended on the erection of said pulp 

 mill and equipment thereof; 



12. The Crown may revoke the right, license or permit to cut, and forfeit 

 any bonus paid whenever the Grantees shall fail to comply with the terms of 

 this agreement; 



13. It is distinctly understood and agreed that only the right to cut wood 

 as aforesaid is sold to the Grantees and not the soil or any part thereof, nor is 

 any interest in the soil so sold, except dn so far as may be necessary, to cut and 

 remove the woods as aforesaid, and the wood when so cut shall (subject to the 

 payment of the price thereof) become the absolute property of the Grantees: 



14. The Government shall retain the right to sell, lease^ locate or otherwise 

 dispose of any lands included in the territory on the same terms and conditions 

 for settlement, mining or other purposes as ordinary Crown Lands situated else- 

 where, and this agreement is not to impede or retard settlement or mining opera- 

 tions, and nothing herein contained shall limit or affect the right of the Depart- 

 ment of Lands, Forests and Mines to sell, locate, lease or otherwise dispose of 

 lands in the aforesaid territory for settlement, mining or other purposes, l)ut 

 the same shall be as free for such disposal as if this agreement had not been made ; 

 and wliere any lands are so sold, located, leased or otherwise disposed of the rights 

 of purchasers, locatees, lessees or other parties entitled to the said lands in and 

 to the timber thereon shall be the same as if this agreement had not been made; 



15. Nothing herein contained or to be done hereunder or by virtue hereof 

 shall entitle the Grantees to a monoply in the use of any river, streams or lakes, 

 or tributaries thereof in the said territory, but the same shall be and continue 

 open for the use of the public in accordance with the law in that behalf. But in 

 view of the character of the industry to be established, the investment of so large 

 an amount of capital and the probable enlargement of the industry in the near 

 future, it is understood that the Government will not grant, sell or confer upon 

 any other person or persons, corporation or corporations the right to cut pulpwood 

 within the territory hereinbefore referred to for the purpose of export before 

 being manufactured into pulp, or the right to cut pulpwood within or upon the 

 said territory, the granting of which rights would, in the opinion of the Minister 

 of Lands, Forests and Mines for the time being, have the effect of so far lessening 

 or diminishing the supply of pulpwood in the said territory during the period 

 covered by this agreement, and which under this agreement will be available for 

 the making of pulp by the Grantees, as to prejudicially interfere with the Grantees 

 during that period in obtaining all the pulpwood necessary for supplying the 

 said mills and any extensions thereof that may be made in the meantime of 

 extensions which may be under construction and bona fide in process of completion. 



16. It is distinctly understood and agreed that nothing herein contained shall, 

 without the consent in writing of the Minister of Lands, Forests and Mines for 

 Ontario, be deemed to confer any right to cut or remove timber from any territory 

 or areas already under license from the Crown, or which may hereafter be 

 placed under license for the cutting of white and red pine timber,, nor 

 shall any cutting take place under this agreement in or in the immediate proximity 

 of territory covered by green merchantable white or red pine available for lumber- 

 ing purposes or which may be considered by the Government to be pine bearing 



