(3) In the event of any application being received from a third party for any rights in or over the surface of an area included in a mining lease, the Governor shall give notice thereof to the lessee, and if the latter shall within six months of the date of such notice show to the satisfaction of the Governor that the application cannot be granted without loss or damage to him in respect of the rights conferred by the said mining lease, the Governor shall assess reasonable compensation to be paid by the applicant to the lessee as a condition precedent to the grant of the application. If, however, the lessee shall fail to satisfy the Governor as aforesaid, the Governor may thereupon grant the application and no action shall lie in respect of any loss or damage that may ensue in respect thereof. [Sidenote: Compensation for damage.] 25. Compensation shall be made to the legal occupier by the holder of a prospecting right or exclusive licence to prospect, and by the lessee of a mining lease other than the holder of a right of occupancy, for all damage done by himself, his agents, or employees, to the surface of any land upon, or under which prospecting or mining operations are being carried on, or to any house or building upon any such land, and the amount of such compensation shall be decided by the Resident of the province in which such land is situated: Provided that if either party is dissatisfied with the decision of such Resident he may within fourteen days appeal to the Governor, who may either decide the matter, in which case such decision shall be final, or refer it to a court for decision. [Sidenote: Royalty to be paid according to regulations.] 26. There shall be paid by all holders of mining leases a royalty to the Government on all ores, minerals, and metals won, which royalty shall be at such rate as may be laid down in the regulations made under section 34, and may be collected in the form of an export duty or in such manner and subject to such conditions as may be laid down in such regulations. [Sidenote: Disputes between holders of mining rights as to mining operations.] 27. If the holder of any right acquired under this Proclamation shall consider himself injuriously affected by the mining or prospecting operations of another, he shall report the matter in writing to the Government Inspector of Mines. The Government Inspector of Mines shall forward a copy of the report to all persons concerned, and after due consideration shall give his decision thereon.