Thursday 4 August 2016

Draft MERCP Regulations

MERCP


The draft Mineral and Energy Resources (Common Provisions) ("MERCP") Regulations are up for consultation. You can make a submission and review the new Regulations here
https://www.dnrm.qld.gov.au/our-department/corporate-information/policies-initiatives/mining-resources/legislative-reforms/mqra/consultation-draft-regulation

We represent Landholders who are affected by mining and gas activities on their land. When negotiations fail, there is a process where a mining or gas company can effect to take a landholder to a mediation or a conference to negotiate the matter before a third party.

The problem currently is that landowners are entitled to have their reasonable and necessary legal fees reimbursed to them for the negotiation of a CCA or Conduct and Compensation Agreement.

Currently there is a gap in the law which says that a legal advisor for a landholder is only allowed to be present at a conference if the other party agrees AND the officer is happy that there is no undue disadvantage to the other party at the conference.  This wording is not desirable because a mining company MUST therefore agree to allow a landholder lawyer to attend the conference.

Usually gas or mining companies are represented at these conferences by legally trained people and if you have ever attended these conferences, there is usually a cast of thousands attending on behalf of the resource company. The balance of power in a meeting, without a lawyer present on behalf of a landholder is undesirable.  The change of just one word in the new Regulations could correct this.

A party must not be represented by a lawyer at the conference unless—
(a) the other party agrees; OR (rather than AND)
(b) the authorised officer is satisfied there is no undue disadvantage to the other party.

Submissions are due on the draft by 12 August 2016.

Contact our Energy, Environment & Agribusiness team on (07) 4927 6333 or at enquire@reesjones.com.au.

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