Conduct and Compensation Agreements

Energy, Environment & Agribusiness Solicitor, Amy Gudmann talks about the standard
Conduct and Compensation Agreement.


Amy can be contacted at Rees R & Sydney Jones Solicitors on (07) 4927 6333 or at enquire@reesjones.com.au.

Environmental Offsets with Melanie Findlay

Audio - Environmental Offsets with Melanie Findlay

Environmental Offsets

Below is a transcript of Melanie Findlay’s interview with Aaron Stevens of 990 4RO from Monday 29 February.

Melanie:
Yeah, so we thought it would be good to get information out to Landowners. That is a bit of a passion of mine, to get the information out before things go wrong and just generally inform people about changes in legislation or opportunities because rural isn’t rural anymore in the legal world.

4RO:

Yeah, it’s all changing, isn’t it?

Melanie:

Yes, yes.

4RO:
Well, that’s great. So, Mel is going to join us regularly, give us some advice. If you have got any questions that you would like to raise, feel free to call anytime, 4922 7990, and maybe we can pass those questions onto you?

Melanie:

Yep, happy to answer questions.

4RO:

So question number one, the one we are going to address today, tell me a little bit about environmental offsets and income opportunities in that area?

Melanie:
I guess for Landowners, the opportunities exist when a developer is say going to knock down some Brigalow or some kind of habitat for an animal or something because they need to build a coal mine. Or someone in Yeppoon, for example, might be going to put up a development and knock down some kind of special tree. So what the government says is, “You have knocked down this special habitat or tree over here, you need to go find it somewhere else and manage it and save it”. So, what happens is Landowners get approached, or used to get approached by brokers, and they would be looked at from some desk in Brisbane and they would say, “Oh, there is some Brigalow here,” looking at a SatNav map or whatever and the broker would contact the Landowner and say “Hey, are you interested in providing an offset for this project?”

I guess the big change in this area of law though is we don’t need the broker anymore. So what the government has said is, are you interested in an environmental offset? You can now register in advance. So, you just lodge some forms on the Department’s website and you can say yeah, I am interested in providing an offset and the financial incentives for the offset’s pretty good. They are well above market value for land rates. And, I guess it is taking that middle man out of the job with these advanced offsets.

4RO:

So where would someone go for that sort of information?

Melanie:
There is a couple of places. So we can obviously help out with the forms. They are not that hard, so you can go on to the Department’s website or we can even give you the form numbers to download and if you think that you have a certain type of Brigalow or some kind of special regrowth, perhaps you would like to get a botanist or someone out to come have a look at it and we can also help you with consultancy in that area.

4RO:

Isn’t that good, cause I imagine that would be the toughest part. I mean, you might think that there is something worth protecting but you are not going to know until you go through the processes.

Melanie:

Yeah, there is actually mapping as well available. So certain properties of higher value for offsets are available, we just need to pull the data out to check that your property is one of those.

4RO:

Alright, if someone is after more information and would like to contact you about obtaining that information or the paperwork, what do they do?

Melanie:

They can go onto the Rees Jones website and have a look, we have written a few articles about it. Or they can give me a ring on 4927 6333. I have got a little blog as well which has got some articles specific for just Landowners that you can find through the Rees Jones website as well.

4RO:
Terrific, what’s that address?

Melanie:
www.reesjones.com.au

4RO:
Mel, a pleasure. Looking forward to catching up with you again soon.

Melanie:

Thank you.

AgForce Qld - Employers Toolbox

Mitigating Workplace Risk

Rees R & Sydney Jones Partner, Justin Houlihan recently spoke at an Emerald Agricultural College information session on Mitigating Workplace Risk in a Rural Environment.

Some of the commonly encountered issues he discussed were:

• No Workplace Health & Safety Policy and Safety Management System in place. If it is in place, it is either limited and lacking in detail or not enforced or followed.
• Equipment, vehicles and machinery are unsafe or defective due to lack of maintenance, modification or age.
• Worker isn’t competent to operate equipment or machinery due to a lack of training or no competency assessment.
• No personal protective equipment provided or the wearing of personal protective equipment wasn’t enforced.
• No induction.
• Inadequate training and/or supervision.
• Lack of records and reporting.

Many of the attendees expressed an interest in obtaining resources that would help them meet their workplace health and safety obligations.

AgForce Queensland has answered the call by producing an Employers Toolbox. This toolbox provides rural employers with information and the templates to assist in meeting their obligations under industrial relations (Fairwork), human resources and work health and safety legislation.

Gasfields Commission Queensland Pipeline Pointers

Below is a summary of the Pipeline Pointers Learnings from Pipeline Stocktake Topic Sheet, available on the GasFields Commission Queensland website.

Background

The GasFields Commission Queensland conducted a major stocktake of land rehabilitation across 64 property locations and tabled the following 10 key learnings.

10 Key Learnings

1. Communication with landholders critical to good relations
2. Contractor management key to best practice
3. Level of compensation to be relative to total impact
4. Multiple pipelines require coordination and cooperation
5. Tapping local knowledge can lead to better outcomes for all
6. Keeping on top of soil subsidence
7. Weed management requires joint effort
8. Fencing the easement can be a valued investment
9. Property and business security brings peace of mind
10. Specific rural industry requirements need to be understood

Rees R & Sydney Jones Energy, Environment and Agribusiness Partner, Melanie Findlay can be contacted on 07 4927 6333 or at enquire@reesjones.com.au.

ARENA data release and large-scale solar projects shortlisted

ARENA data release and large-scale solar projects shortlisted

ARENA have released a summary of the data sourced from their competitive expressions of interest (EOI) round. 

In the EOI round, solar and renewable energy companies were invited to submit a proposal in a bid to secure a portion of the $1000 million in funding that has been set aside for large-scale solar projects. ARENA received proposals for 75 large-scale projects in the EOI round. 

ARENA assessed the EOI applications last year and have since listed 22 projects that are invited to proceed to the full application stage. 10 projects that have been invited to proceed to the full application stage are located in Queensland.

If the Queensland projects are successful in securing funding from ARENA, it is likely that we will see large-scale solar projects in Baralaba, Longreach, Hughenden, Dalby, Collinsville, Oakey, Proserpine and Ipswich.

Full applications must be submitted to ARENA by 15 June 2016. 

Links:
http://arena.gov.au/programmes/advancing-renewables-programme/large-scale-solar-pv/
http://arena.gov.au/resources/large-scale-solar-pv-competitive-round-eoi-application-data/

See also, Emma Kime's article "Solar Projects: The Prospecting Race and ARENA Funding"

The Carbon Market & Trading

Melanie Findlay and Emma Kime attended the AgForce February 2016 Member Meeting in Middlemount to discuss carbon emissions and the Emissions Reduction Fund.

Below is a brief summary of the presentation, the full presentation can be viewed here Carbon Market and Trading: Emissions Reduction Fund.

What is the Carbon Emissions Reduction Fund?

The Emissions Reduction Fund is a voluntary carbon offset scheme and part of Australia’s pledge to reduce emissions and create a competitive carbon market. See also The Landowner Lawyer’s discussion on the 2015 COP21 blog “What’s all this Paris stuff?”

Accredited Projects

• Beef Cattle Herd Management
• Feeding of supplements
• Avoided clearing of native regrowth

Beef Cattle Herd Management

Management practices that reduce emissions include establishing higher quality pasture, providing a feed supplement all year round and expanded watering points.

Feeding of supplements

This project requires urea lick blocks to be replaced with nitrate lick blocks and the use of the Beef Nitrates Calculator.

Avoided clearing of native regrowth

To be eligible for this project, the land must have native forest cover and have been cleared at least twice in the past.

Energy, Environment & Agribusiness Partner, Melanie Findlay can be contacted on 07 4927 6333 or at enquire@reesjones.com.au

CGT Withholding Regime may affect rural land sales

Rural Conveyancing just got even more difficult for our Rural and Agribusiness clients. From 1 July 2016, Vendors and Purchasers of rural land could be impacted by the new Tax and Superannuation Laws Amendment Bill 2015. 

The new Capital Gains Tax (CGT) Withholding Regime was intended to target foreign sellers of land, but rural land transfers are likely to be affected. The way the new regime will work is as follows:-

Generally, if a Vendor enters into an option or contract to transfer any land or lease of Australian land, the Purchaser will be required to withhold 10% of the purchase price from the settlement funds. This money is then paid to the ATO. The funds are taken on account for the Vendor’s potential CGT liability. The new CGT Withholding Regime will apply, unless there is an exemption.

Exemptions include land or leases with a market value of less than $2,000,000.00 or where a “Clearance Certificate” has been obtained. These days, rural properties are often sold for over $2,000,000.00. It is the Purchaser’s responsibility to make sure that the CGT is withheld and so there are changes in the wind for both Buyers and Sellers.

At this stage, it is a case of “watch this CGT space”, but be aware of the impending change.

Senate Inquiry on Unconventional Gas Mining in Australia

What are your thoughts? What is your experience of the Unconventional Gas Industry?

In November 2015, the Senate established a Select Committee on Unconventional Gas Mining. The Committee is responsible for conducting a review and questioning “the adequacy of Australia’s legislative, regulatory and policy framework with respect to unconventional gas mining including coal seam gas (CSG) and shale gas mining”. 

The Committee is calling for landholders, community members and interested parties to make a submission by 14 March 2016. The Committee will then prepare and provide a final report to the Senate on or before 30 June 2016.

Your thoughts and what to submit

Submissions may be made with respect (but not limited) to the following:- 

1. the social, health, environmental, agricultural and economic impacts of unconventional gas mining; 
2. the current laws and regulatory frameworks and whether they protect your water resources and rights as a Landholder; 
3. compensation and insurance agreements that you have with gas companies; 
4. the current taxation agreements in relation to unconventional gas mining; and, 
5. the establishment of a national approach to the conduct of unconventional gas mining. 

Making a Submission

If you plan to make a submission, we encourage you to include the following on your submission:- 

1. Your contact details and whether you would like your submission to remain confidential or be made publicly available; 
2. Who you are, what your connection to the unconventional gas mining is and why you are making a submission; and, 
3. Your thoughts and any information that you have with reference to the above points and the Terms of Reference. 

To access the Terms of Reference, to gain additional information on the Senate Inquiry and Select Committee on Unconventional Gas Mining or to lodge your submission, please see:-http://www.aph.gov.au/Home/Parliamentary%20Business/Committees/Senate/Gasmining/Gasmining.

The Mining, Rural and Gas Team at Rees R & Sydney Jones are preparing a submission to the Select Committee on Unconventional Gas Mining. If you would like help in making your submission, we would be happy to assist. 

Please call Mining and Gas lawyer Melanie Findlay or one of our other Mining and Gas Lawyers at Rees R & Sydney Jones.

Gates being left open?

This video showed up in our Landowner Lawyer's newsfeed and it was too good not to share - definitely, one way to make sure resource companies close your gates!

SIGN HERE: Petition to the Turnbull Government to Establish a Royal Commission into the Human Impact of CSG Mining

Senator for Queensland, Glen Lazarus is seeking public support to call on the Turnbull Government to establish a Royal Commission into the Human Impact of CSG mining.

In relation to coal seam gas mining (CSG) in Queensland, Senator Lazarus has expressed that "the resource sector is an important industry for Australia, but as a country, we can not allow the health of our people to be compromised" and that "all levels of Government have let the people of Australia down allowing the unfettered growth of an industry which is known to be harmful to the environment, human health, communities and ultimately our future."*

To show your support for establishing a Royal Commission, you may like to sign the petition at the following link:- https://www.change.org/p/the-abbott-government-establish-a-royal-commission-into-the-human-impact-of-csg-mining

For more information on Senator Lazarus's stance on CSG mining and what he is campaigning for, see the following link:- http://senatorlazarus.com/csg-inquiry/.

---

*Senator Glen Lazarus, 'Establish a Royal Commission into the Human Impact of CSG mining' <https://www.change.org/p/the-abbott-government-establish-a-royal-commission-into-the-human-impact-of-csg-mining>.

Solar Projects: The Prospecting Race & ARENA Funding

UPDATE: The Solar Race

The “solar prospecting race” is continuing to heat up with in Central Queensland. Farmers and landowners are being approached by solar and renewable energy companies interested in building large-scale solar farms on their land.

Solar Projects – On-farm Income

Solar projects and farms are an opportunity for farmers and landowners to earn a different form of “on-farm” income. In addition to directly benefiting the farmers and landowners, solar projects and farms can have a wider impact on rural communities in Queensland. These projects offer a relatively reliable energy source and create job opportunities during the construction of the solar farm.

Australian Renewable Energy Agency

The Australian Renewable Energy Agency (ARENA) has recently announced that 10 large-scale solar projects in Queensland have been selected to proceed from the proposal stage to the full application stage. The projects selected are able to bid to secure Federal Government funding. A full list of these solar projects can be found on the ARENA website.

The Federal Environment Minister, Greg Hunt has said “the shortlisted proposals were chosen from a very strong field, demonstrating Australia is ready to invest in utility-scale renewable energy options suited to the 21st century”.

If Federal Government funding is received by solar and renewable energy companies, we are set to see large-scale solar projects located in Dalby, Proserpine, Oakey, Hughenden, Longreach, Baralaba and Ipswich.

If you have been approached by a solar or renewable energy company or have questions about the potential opportunities, including the use of your property for clean energy or renewable projects, our Rural, Mining and Gas Agribusiness Team can help.

Please contact either Melanie Findlay or Emma Kime of Rees R & Sydney Jones for further information. 

You may also be interested in reading other articles written by Melanie Findlay such as Solar Farm Opportunities for Landowners.

Tips on Measuring Bore Levels

Emma Kime from our Agribusiness Rural Law Team found this instructional video online for Landowners. Here are some tips in regard to measuring the standing water level in your bores. 

The more information you have in regard to the status of your bore before any mining or gas activities the better. Especially if there is an argument later on about any Make Good requirements.

The Rees R & Sydney Jones Agribusiness Rural Law Team, is lead by Partner Melanie Findlay and can be contacted on 07 4927 6333 or via email at enquire@reesjones.com.au 

What's all this Paris stuff?

Last year COP21 occurred in Paris. The 196 Parties agree to the terms of an Agreement which is to be signed in New York in April this year. If it gets signed the parties to the Agreement will be required to action their goals that were set at the Paris conference. Australia promised to reduce GHG emissions by 26-28% below 2005 levels by 2030. We promised to do this using the Emissions Reduction Fund which purchases emission reduction credits and we also promised to increase our Renewable Energy Target to 23% by 2020. 

What this will mean for our agricultural clients is that there are new investments in reforestation projects and forestry offsets. Carbon projects could become tradable internationally and so projects through the Emissions Reduction Fund will become popular. Landowners can benefit from approved method projects like Beef Herd Management, sequestering carbon in soils in grazing, feeding nitrates to cattle, avoiding clearing of native regrowth and Savanna fire management projects just to name a few. Perform these in accordance with the rules and credits or money could be earnt.

The signals are that reliance on fossils fuels will reduce (these can still be offset using sinks, CCS etc) and there will be an accelerated growth in clean energy and renewables. ARENA for example funded over $22M towards the Barcaldine Community Solar Farm. Some projects like this could be located on private land and agreements reached with private companies who wish to construct these renewable projects.

Grazing may still be grazing, but what if you just grazed a little differently and were paid to reduce your GHG omissions or the GHG omissions of some other polluter in another country?”

Landowners Solar Farm Opportunities

Off Farm income streams are always being looked at by Graziers and Farmers, but what about if your rural property could provide you with a different form of “on-farm” income.

Central Queensland is becoming a hot spot for large scale solar installations or Solar Farms. Under the Solar 60 Program, the Queensland Government is calling for tenders and will provide financial assistance to solar and renewable energy companies to develop 60MW large-scale solar farms. The Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC) have also committed more than A$100 million to drive the development of large-scale solar projects in Australia.

With funding for large-scale solar projects available, Landowners are being approached by solar and renewable energy companies for the rights to investigate and build solar farms on their land. Origin Energy has even indicated that there is a “Prospecting Race” for solar projects in Queensland. 

If you have any queries about opportunities in Solar or using your property for clean energy or renewable projects, please contact Rural, Mining and Gas Partner, Melanie Findlay of local firm Rees R & Sydney Jones on 07 4927 6333.