Watch out you do not Opt Out?

 The new Mining and Energy Resources (Common Provisions) Bill 2014 was passed by the LNP Government and comes into force over the next month or so.  Whilst there has been much debate over the issue of removing rights to object to Mining Leases for landowners, some other nasty provisions have been added to the mix which landholders need to be wary of.  Rural Lawyer Melanie Oliver explains the new “Opt Out Agreements” that have just been added into the already confusing world of resource company documents.

An owner or an occupier of Land can now Opt Out of a Conduct and Compensation Agreement with a resource company. Once an Opt Out Agreement is signed, the resource company can enter the land and start its activities.  In our view it would be very rare for it ever to be appropriate for a Landholder to sign an Opt Out Agreement and we would urge Landholders to be very cautious and get full advice before signing anything they are presented.

If you would like further information or have any questions please give Melanie Oliver, Amy Gudmann or Justin Houlihan a call at Rees R & Sydney Jones on (07) 4927 6333.  

Update on Galilee Basin State Development Area (GBSDA)

In November 2013, the Queensland Government released a paper entitled "Galilee Basin Development Strategy". In the document, great emphasis was placed upon the desire of the government to open up the Galilee Basin. One of the initiatives identified by the Government in achieving this aim was the streamlining of the land acquisition, planning and approvals process.

The Government has now released the fact sheet and a map of the proposed GBSDA and is undertaking consultation with various stakeholders. Included in the consultation will be landowners and the community affected by the proposed GBSDA.  The consultation will take place between January and March and the Government will consider feedback provided by stakeholders on the extent of the proposed GBSDA as well as a draft development scheme proposed for the GBSDA. The proposed GBSDA and the draft development scheme are available on the Department of State Development, Infrastructure and Planning website at www.dsdip.qld.gov.au/coordinatorgeneral/.  It is also proposed that officers of the Coordinator-General will visit Clermont, Moranbah, Collinsville and Glenden during March 2014 to have face-to-face meetings with some stakeholders.

If your property is within the area of the proposed GBSDA, then it is important that you are aware of the impacts that the declaration of the State Development Area and the likely impacts of the rail corridors may have on your property to enable you to make a meaningful submission to the Coordinator-General, so that all of the relevant impacts are properly considered.

If you need assistance or further information in relation to this, contact Andrew Palmer or Justin Houlihan at Rees R & Sydney Jones on 4927 6333.

 

 

Drilling Wells – know the full impact first.

It all started when some nice bloke “from a property around here” had coffee with you one day and told you his company wanted to drill a couple of holes on your land – “down the back paddock, only about the size of half a basketball court, you won’t even know it’s there.”

This might be true once the well is completed, however during intensive construction, drilling occurs 24 hours a day and the drilling team needs a lot more space for all their gear, trucks, dongas and other equipment.  The more space the resource company takes up, the less space you have to run your business on.

It is very important to get as much information and detail as you can about what a resource company intends to do if they want to drill on your land - how long they need to do it (number of days); how much area they require; and how they will conduct themselves.  You should be able to receive detailed information for both the overall project and each stage of the activities. For example, the company may need to build a new road to get their well site.  They will have 1 bulldozer, 2 graders and 3 trucks, with 6 personnel, and will take 2 weeks to build their road at a rate of 500m/day.  The locations of the new tracks should be marked clearly on a map included in your agreement.   All company vehicles should be parked in a designated area.

The more detailed and more accurate the information you have available to you and included in your agreement, the better you can assess the true impact of the well (both lost income and day-to-day disturbances) and not be caught out with any surprises later on.  Be aware of the implications of lines such as “and any incidental activities necessary or convenient”.  If included in your agreement, six months down the track “convenient” for the company could be to lay a pipeline between two sites and you would not be able to claim more compensation for the additional disturbance. This is why is it important to have clear and concise terms in your agreement – exactly what the company can do, where they can do it and how long they have to get it done.

Being aware of what you are signing will ensure that you do not sacrifice your long term productivity, planning and sustainability.

Amy Gudmann is a solicitor in the Rural division at local law firm Rees R & Sydney Jones Solicitors.

Changes to Land Access Laws Update

There is currently a lot of activity in our region in regards to mining and gas. This article looks at the land access laws for resource exploration that you may not yet be aware of.

Why are resource companies allowed access to my land to take resources?

In most situations, the resources that are located under the land do not belong to landowners. The law states that they generally belong to the people of Queensland. So ownership of natural resources like gas, coal, gold and minerals that are underground do not transfer to a purchaser who is buying a property.

Can I stop a resource company from coming onto my land to look for resources?

Provided that they possess the relevant authority and the correct entry notices are given to you, a resource company can come onto your land upon giving 10 business days notice unless you waive this right under an agreement.  They can only do this though, to conduct what is known as “preliminary activities”.  The activities that are described as preliminary are generally relatively minor. Should they wish to engage in “advanced activity”, which basically is any activity that breaks the top soil on your land, they will be required to enter into a compensation agreement with you.

How do I know which companies have authority to access my land?

The Department of Natural Resources and Mines now allows landowners to conduct searches on the internet which display reports for free. This allows you to see who has the right to explore on your property. This is an important tool for you to determine exactly who may have rights associated with your land.

What if a resource company says they want to say drill on my land, can I stop them?

If a resource company wants to conduct activities on your land that will cause an impact to your business or land use, then they cannot start those activities until they have signed a contract with you for compensation. You are legally entitled to be compensated for any loss you suffer.

Can I just refuse to sign any contracts – will that stop them coming onto my land?

No, it won’t. If you simply refuse to negotiate, the resource company might take you to the Land Court. The resource company can only do this if they have given all the proper notices and tried, to a reasonable standard to negotiate with you. Once the Land Court has issued their orders about compensation, the resource company would then be able to come onto your land.

You can however seek advice to ensure that you have considered all options before signing the contract.  Under the laws relating to land access, if a resource company wants a compensation agreement with you, then they are required to pay for any reasonable legal, accounting and valuation fees that you incur in sorting out your agreements. It therefore makes good sense to see a professional as soon as you are approached by a resource company.