ACCESS LAND – WATCH YOUR SPOKEN WORDS WHEN DEALING WITH RESOURCE COMPANIES!

It is a longstanding general rule in property law which says that if you are going to give away a right or interest in your Land, then this should be in writing. Unfortunately though, as new laws have been created to deal with Land Access for coal seam gas (CSG) and mining companies, this general and longstanding rule has been whittled away.

What is an Access Agreement?

Sometimes gas companies need access across blocks of land to get to the blocks of land under which the coal seam gas (CSG) might be found. The gas companies are required under the Petroleum and Gas legislation to enter into "Access Agreements" with landowners and occupiers of land. The right to come across the land is called an "Access Right" and it can include the right to construct roads or tracks across your Land to allow them to get to the area that they want to explore.

How can I give away access rights without an agreement in writing?

The Petroleum and Gas (Production and Safety) Act is currently drafted in such a way that Access Agreements or Access Rights can be given away orally.

How are Access Agreements different to Conduct and Compensation Agreements?

These Access Agreements are very different. There isn't even a need to compensate the Landowners or occupiers under an Access Agreements. Conduct and Compensation Agreements have to be in writing. If an oral agreement is made in regard to an Access Arrangement for say a road across the land, then this could be enough to allow a company to access and build the road on your Land. There is no requirement for compensation to be paid, but it can be negotiated.

If a Seller of Land enters into an oral agreement, and I buy the place, am I bound by this?

Yes. The law states that these agreements are binding on future owners of the Land. The fact that someone's word could bind up a property well into the future is obviously a very large problem and the law should be changed.

Surely the new laws about mining and gas will fix this won't they?

No. The laws in regard to Access Land are changing; however when the Mining and Energy Resources (Common Provisions) Bill 2014 was presented to Parliament on 5 June 2014, the problem with oral Access Agreements had not been addressed. It seems silly that a company might be allowed to build a large road on someone’s land without giving someone compensation, and without entering into a written agreement.

Every situation is different and because some things you even say now could be binding on you, you really should seek legal advice as soon as you are approached by a mining or gas company for access to your Land. It is also very important to look at whether or not your land is inside or outside the exploration area or tenement of a company to know what type of agreement you should be negotiating.

If you would like further information or have any questions please give Melanie Oliver, Amy Gudmann or Justin Houlihan a call on (07) 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.

Chemical Use by Resource Companies

What are the implications if a resource company forgets to tell you about that patch of parthenium they sprayed last week and you’ve got no idea what the chemical is or what it does, or if there are any withholding periods?  Or what about that puddle of fraccing water that your cattle just walked through because of a burst pipe?  As a National Vendor Declaration (NVD) is a legal document, it must be filled in correctly to safeguard against being issued with serious penalties for supplying incorrect information.

 

The NVD asks questions about chemical residue, withholding periods and where your cattle have been grazing for the last 60 days.  Even though you know what chemicals you have on your property and you know where you’ve used them, what about the resource company? 

Resources companies should need to get your consent to chemical use before they start and it’s really important to have a clause covering chemical usage in your access agreement with the resource company.  A good access agreement will cover what happens if there is a problem and provide details of how to fix it.

Negotiating Access Agreements can be a time consuming exercise, but this is your life, your home and your livelihood – so it is well worth investing some time to make sure there are no major disruptions to your business and your income.

Anyone with questions or concerns about covering chemical usage in an access agreement, please feel free to contact Melanie Oliver or Amy Gudmann at Rees R & Sydney Jones Solicitors on (07) 4927 6333.

When is a Pipeline - Not a Pipeline?

Pop Quiz!

I'm going to ask you a question about Pipelines.


What is "A Pipeline"?


The most common answer is a single round piece of polypipe right?

Wrong!

"A Pipeline", if we look at the Petroleum and Gas Act is a lot more than just "A Pipeline".

In Queensland, under that Act, A Pipeline means a pipe or a system of pipes for transporting petroleum, fuel, water or certain gases.

So "A Pipeline" means a "System of Pipelines".

Landowners need to be very careful when they assess the compensation offered to them by Pipeline Companies. Should you be receiving compensation for one Pipeline, or a System of Pipelines?

Are you looking at accepting compensation just for "A Pipeline"?