Shepherds Creek - in the western slope of terrace between Pigroot and Adams Gullies. The outline of the portal is still visible however it is closed off. It is located approx 20m north of location #250. The tiphead / loading bank is still visible. The main drive was a 238m decline at a grade of 1 in 4.5. A survey plan produced by Mr G A Blaikie (surveyor) of Gore in 1943 shows location #249 as Shepherds Creek No 2 Tunnel and details the underground workings. The mine was very wet due to seepage from Adams Creek, which finally caused it to collapse. The coal seem was said to be 7m thick.

William Richard Parcell (2) was the mine manager.

At this time the Shepherds Creek No 1 mine (#248) had become worked out and William Richard Parcell (2) opened up a new mine close by. This mine was named Shepherds Creek No 2. It was set so that a large volume of coal could be worked efficiently and economically. The mine proved to be very successful and was worked in the main decline to a depth of 1,500 ft (456m).

In April 1913, the Cromwell & Bannockburn Colliery Company let their Shepherds Creek No 2 mine on tribute to the mine manager Mr William Richard Parcell (2). The mine then became known as the Kawarau mine.