12. All hundreds existing within the Land District of Otago, at the time of the coming into operation of this Act, are hereby re-constituted with the same names, areas, and boundaries respectively, and are hereby established as hundreds of land for the purposes of this Act, wherein certain provisions of this Act relating to the sale and disposal of land within hundreds shall take effect.

13. It shall be lawful for the Governor, from time to time, by Proclamation published in the New Zealand Gazette, to constitute into a hundred any portion of the Crown lands not forming part of any hundred previously proclaimed, notwithstanding that such lands or any part thereof shall be comprised within any pastoral lease or license heretofore or hereafter to be granted by the Crown under any law regulating the occupation or disposal of Crown lands, and whether or not the same shall have been included within the boundaries of any proclaimed gold field: Provided always that during the currency of any pastoral lease now in force no hundreds shall be constituted comprising land within such lease, except in accordance with the provisions of section 97a, "Otaso Waste Lands Act, 1872."

14. Every person holding a lease of any pastoral lands comprised within any district proclaimed a hundred or block of land shall be entitled to compensation for the determination of his lease, and for the then value of all fences then existing upon the said lands: Provided that in no case shall the total amount of such compensation for such determination of such lease over such portion of the run so to be proclaimed a hundred or block as aforesaid exceed two shillings and sixpence per acre: Provided also that the holder of such lease shall be entitled to such compensation only in respect of fences erected and at the tune of the determination of the lease standing on the land so proclaimed a hundred or block of land as aforesaid, the amount of such compensation, if not settled by agreement, to be determined in the manner provided in Part III. of "The Public Works Act, 1876:" Provided always that no compensation whatever shall be payable for the determination of any pastoral lease or license granted under this Act where the provisions of section one hundred and twenty-one of this Act as to twelve months' notice have been complied with.

15. If the holder of a pastoral lease can agree with the Board to give up part of the run held under such lease for purposes of settlement without claiming any compensation for the determination of such lease, it shall be lawful for the Board to enter into an agreement with such holder, upon such terms and conditions, not being repugnant to the general provisions of this Act regulating page 170 the disposal of rural land, and with such provisions for granting pasturage rights (if any) to settlers occupying the land comprised in such agreement, as the Board may think best suited to promote the settlement of people on the land.