A second act received Royal Assent on 28 March 1794, entitled ""An Act for extending the Wyrley and Essington Canal"" – this authorised a long extension, from Sneyd (thus making the line from Sneyd to Wyrley Bank effectively a branch) past Lichfield to Huddlesford Junction on the Coventry Canal, together with the raising of up to £115,000 (equivalent to £ million in ), to complete construction. The 1794 Act also authorised a branch to the Hay Head Limeworks, which became known as the Daw End branch, and a short branch to some coal pits, which is variously known as the Lords Hayes, Lord Hayes or Lord Hay's branch. The Lichfield branch would create a new and shorter route for coal traffic from Tipton bound for the Trent and Mersey Canal, and because this would take traffic away from the Birmingham Canal, passage of the bill through Parliament was smoothed out by allowing them to charge a compensation toll of 3 pence (3/240 of a pound) per ton on coal passing through Wolverhampton which was bound for Fazeley via the new route. Water supply was carefully regulated, to protect the supplies used by millers and other canals, and there was a restriction on the amount that could be discharged into Whittington Brook, to protect the Marquess of Donegall's pleasure gardens from damage.