Agribusiness, Coal Seam Gas and Mining – Page 2

We regularly distribute updates to our clients and contacts on specialised areas of law.

Please contact us if you wish to be added to the distribution list for these newsletters. The information is accurate at the time of writing but the law may have changed. You should treat this information as general advice only and seek specific advice for your particular circumstances.

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The Australian Consumer Law and Mining Companies

Landowners should be aware that as consumers of goods and services they have rights that are protected under the Australian Consumer Law (ACL). The ACL is the national law for fair trading and consumer protection. The ACL includes: a national unfair contract terms law covering standard form consumer and small business contracts; a national law guaranteeing consumer rights when buying goods and services; a national product safety law and enforcement system; a national law for unsolicited consumer agreements covering door-to-door sales and telephone sales; simple national rules for lay-by agreements; and penalties, enforcement powers and consumer redress options. Under the ACL companies, such as resource companies, in the supply of goods or services, must not: engage in unconscionable conduct; or…

Rehabilitation – Fixing your Land

Rehabilitation of land following CSG and mining activities remains a constant problem for landowners. Typical problems include the mixing of topsoils, inadequate erosion control measures and the introduction of weeds. Landowners have strong rights to ensure that rehabilitation is performed adequately. These rights exist despite any agreements that you have entered into with a resource company or the time that has elapsed since those agreements were entered. These rights exist even if you have been compensated for grazing or productivity losses associated with disturbance to the pipeline land. This information provides advice of a general nature only and should not be relied upon as legal advice. Published 4 July 2016.

Rehabilitation for Pipeline Infrastructure

Many landowners have negotiated easements with resource companies which authorise the construction, operation and maintenance of gas pipelines, particularly the major trunklines from the Surat Basin to the Gladstone LNG plant or trunklines from gas fields to compressor stations. A key feature in most easement agreements is an obligation on resource companies to comply with the conditions of its Environmental Authority (EA). The EA sets out the government imposed environmental conditions that must be complied with when activities are being undertaken on your land by resource companies. For example, a typical EA will require that all land significantly disturbed by petroleum activities be rehabilitated to: a stable landform with a self-sustaining vegetation cover with same species and density of cover…

Rehabilitation for CSG Developments

There are similar rehabilitation conditions imposed on resource companies under EA’s for coal seam gas developments which have been authorised by Conduct and Compensation Agreements (CCAs) entered into between landowners and resource companies. Most CCAs contain a contractual commitment from the resource company to comply with the conditions of the EA including to consult with landowners about the nature of rehabilitation required on their land. In addition, there are typically specific obligations set out in the EA that must be complied with when rehabilitating land affected by gathering pipelines. The backfilling and rehabilitation of pipeline trenches must typically: achieve a stable landform; exhibit no subsidence or erosion gullies for the life of the operational pipeline; be re-profiled to a level…

Groundwater Monitoring – CSG Net Group

The Department of Natural Resources and Mines (DNRM) CSG Compliance Unit has established CSG Net Groups which aim to assist landowners to effectively monitor water levels in their water bores. Registering for a CSG Net Group allows landowners to upload monitoring data online using a program which automatically generates monitoring graphs for that selected bore. This allows landowners to identify trends and enables early identification of changes in water levels or bore performance. Annual reports are generated for each CSG Net Group which provides a summary of data collected and groundwater trends in the area. Data collected as part of the program is automatically forwarded to DNRM where it is stored in the Groundwater Database. The results are used to cross-reference…

You Have Rights

Even in circumstances where you have signed an agreement authorising the development of pipeline infrastructure on your land in exchange for the payment of compensation, there are ongoing rehabilitation obligations that must be met by resource companies. The standard of rehabilitation on your land will either comply with the EA conditions or not. If EA conditions are not complied with, the resource company may have committed “environmental harm” under the Environmental Protection Act 1994 (EPA). You have rights to demand that rehabilitation be performed to a standard consistent with that identified in the EA. You have the ability to take action under the EPA to ensure compliance. Resource development is short term in nature compared to the long term productivity…

Predicated Impacts to Hutton and Precipice Bores

Landowners across the region should be aware that the impacts of the groundwater extraction associated with coal seam gas (CSG) development may not be limited to the Walloon Coal Measures as originally predicted in the Underground Water Impact Report (UWIR) in 2012. The revised UWIR was released in draft in March 2016. The report concludes that bores sourcing water from the Hutton Sandstone and Precipice Sandstone aquifers may be impacted by water extraction from the CSG industry. The aquifer known as the Walloon Coal Measures is the CSG target formation in the Surat Basin. The revised UWIR indicates that a further 64 bores sourcing water from the Walloons Coal Measures are likely to suffer a decline in water level within…

The Mineral and Energy Resources (Common Provisions) Act 2014 – Update

P&E Law lodged a recent submission on behalf of landowners in respect of the Palaszczuk government’s Mineral and Other Legislation Amendment Bill 2016 introduced in February 2016. The Bill proposes to amend the Mineral and Energy Resources (Common Provisions) Act 2014 (the MERCP Act) which is currently scheduled to commence on 27 September 2016. On a positive note the Bill will amend the MERCP Act to restore community rights to object to mining lease applications. There are some provisions of the Bill aimed at protecting agricultural infrastructure like stockyards, bores and artesian wells as restricted land. In our view the amendments take away important existing protections for landowners. P&E Law in its submission focussed on 4 key reforms that significantly disadvantage…

Rehabilitation Costs and the Chain for Responsibility Reforms

On 15 March 2016 the Environmental Protection (Chain of Responsibility) Amendment Bill 2016 (the Bill) was introduced into the Queensland Parliament. The purpose of the Bill is to amend the Environmental Protection Act 1994 (EP Act) to: facilitate enhanced environmental protection for sites operated by companies in financial difficulty; and avoid the State bearing the costs for managing and rehabilitating sites for financial difficulty. (Explanatory Notes p1) This Bill seeks to ensure that companies in financial difficulty continue to comply with environmental obligations and bear associated management and rehabilitation costs without these burdens falling on the taxpayer. These changes following the recent moratorium on underground coal gasification (UCG) projects and the prosecution of Linc Energy for alleged breaches of the…

Approval Requirements under the Commonwealth EPBC Act for Vegetation Clearing

The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is the Australian Government’s primary environmental legislation and is designed to protect Matters of National Environmental Significance (MNES). This legislation applies in addition to any state or local government environmental assessment processes and approval. Approval may be required by landholders under the EPBC Act to clear vegetation even if you currently hold a state approval such as a ‘High Value Agricultural Clearing Permit.’ Matters of National Environmental Significance (MNES) MNES are listed in Part 3 of the EPBC Act and include: World and national heritage places; Internationally significant wetlands (declared RAMSAR wetland); Listed threatened species and ecological communities; Listed migratory species; and The Great Barrier Reef Marine Park. The ‘Protected…

Senate Select Committee on Unconventional Gas Mining

P&E Law welcomed the Senate Select Committee on Unconventional Gas Mining and made a submission setting out a number of our concerns including: Give landowners the right to refuse CSG mining on their land. Impose statutory obligations on CSG companies to disclose relevant information to landowners negotiating CCAs including: Noise modelling Dust modelling Development plans identifying proposed future infrastructure Weed and water baseline studies Surface and groundwater baseline studies Management plans, including rehabilitation plans, soil management plans, weed management plans etc. Reverse the proposal to allow “opt out agreements” whereby CSG companies approach landowners to “Opt Out” of the statutory framework for CSG mining, avoiding many of the statutory protections in place; Abandon the Queensland government’s proposed change to do…

CARBON OPPORTUNITIES FOR LANDHOLDERS

Recently the Commonwealth Government’s Clean Energy Regulator purchased over 45 million tonnes of carbon abatement measures at the second Emissions Reduction Fund auction held on 4 and 5 November 2015. The Fund was established through a variety of legal regulation under the Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth). With the advent of the Commonwealth government’s Carbon Farming Initiative as part of its Direct Action policy, landholders can take advantage of significant financial incentives to negotiate carbon sales contracts for their properties. Farmers and landowners who take steps to reduce greenhouse gas emissions may be able to earn carbon credits from activities such as: reducing livestock emissions; increasing efficiency of fertiliser use; enhancing carbon in agricultural soil; storing carbon through…

Updated Underground Water Impact Report

In early 2016, a draft update to the Underground Water Impact Report (UWIR) for the Surat Cumulative Management Area (SCMA) will be released by the Office of Groundwater Impact Assessment (OGIA) for public consultation. We strongly recommend all landowners review the draft update UWIR to determine whether their bores will be affected by the continued water extraction in the region. The current UWIR was approved by the Department of Environment and Heritage Protection and became effective on 1 December 2012. The report assesses the anticipated impacts of cumulative water extraction by coal seam gas companies on underground water resources such as bores and springs in the SCMA. The report identified some 85 bores that would be immediately affected by the…

Case Update – Endocoal Limited v Glencore Coal Queensland

In Endocoal Limited v Glencore Queensland Pty Ltd and Department of Environment and Heritage Protection [2014] QLC 54, the Land Court found that a coal mining company applying for a mining lease was required to enter into a make good agreement with a neighbouring coal mining operator. In this case, Endocoal Limited (Endocoal) applied for a mining lease for an open cut coal mine near Springsure. Since 2012 Glencore Queensland Pty Ltd (Glencore) has operated the Rolleston Coal Mine, which neighbours the proposed site for the Endocoal mine. Glencore objected to the grant of the mining lease and the Environmental Authority on the basis that there would be adverse impacts to a water supply known as Naroo Dam. Glencore use…

Land Rehabilitation – Landholders Protection Tool Kit

Over the past six months P&E Law has been engaged in a number of cases on behalf of landholders in dispute with resources companies primarily to have their land rehabilitated after the construction of coal seam gas infrastructure. Issues that consistently arise include weed invasion, subsidence, erosion, soil inversion and inappropriate seed mixes, all of which reduce productivity and require time and resources to fix. In some cases resource companies have turned their backs on landholders experiencing these problems and ignored their complaints. However, there are a number of tools available to protect landholders in this situation which can be used to: require resource companies to rehabilitate land in accordance with their rehabilitation obligations; and give rise to claims for additional…

Strong Opposition to Changes – Opt Out Agreements and the 600m Rule

Recently P&E Law voiced its strong concern to the Queensland Government about plans to proceed with two of the previous government’s changes to landowner rights for mining and exploration. In 2014 the Newman LNP government passed laws including the Mineral and Energy Resources (Common Provisions) Act 2014 (the MERCP Act) significantly eroding landowner’s rights including: (a) curtailing the right to object to the grant of new mining leases; (b) introducing “opt-out agreements” and (c) abolishing the 600m rule. The majority of the MERCP Act is un-commenced. Changes to the mining objection process have been unwound with the recent repeal of section 47D from the State Development and Public Works Organisation Act 1971. However the Queensland Government appears to be pressing ahead…

Landholders’ Right to Refuse (Gas and Coal Bill 2015)

On 4 March 2015 the Landholders’ Right to Refuse (Gas and Coal) Bill 2015 was introduced into the Australian Senate, which seeks to provide landholders with the right to refuse gas and coal mining on their land and to ban hydraulic fracturing. p&e Law lodged a written submission on the Bill and has provided evidence before the Senate Environment and Communications Legislation Committee Inquiry on the issue. While p&e Law supports the Bill, the inquiry allowed us to raise various other issues to the Committee which we believe could be addressed as part of the Bill. Under Queensland’s Petroleum and Gas (Safety and Production) Act 2004 (PAG Act), landholders do not have the right to refuse CSG development on their…

Recent Decision: Review of Compensation for Material Change

In the recent case of Henry v Georgetown Gold Operations Pty Ltd [2015] QLC 13, a landowner (Henry) applied to the Land Court to review compensation being paid under a compensation agreement on the basis that there had been a material change in circumstances since entering into an agreement with miner ERO. The decision provides a useful guide about what may constitute a material change in circumstances and how the Court approaches a review in compensation. It is relevant to landowners who have entered into conduct and compensation agreements (CCAs) or other land access agreements with coal seam gas companies and mining companies across Queensland. The Issue ERO held various mining leases under the Mineral Resources Act 1989 (Qld) (MRA)…

New Government to Review Recent Mining Changes

With the recent change of government, many landholders eagerly await news from the Queensland government about proposed changes to land access and objection rights for landholders affected by exploration and mining projects. The Mineral and Energy Resources (Common Provisions) Act 2014 curtailed the right to object to mining development. It also removed the 600m rule that afforded protection to landholder’s residences against unwanted exploration. The Common Provisions Act also introduced measures to allow mining companies and landholders to “opt out” of the protections afforded by the statutory negotiation framework for CSG mining. Prior to the election, then Leader of the Opposition Annastacia Palaszczuk, MP committed to restoring “the rights of communities, residents and individuals to developments without the prospect of…

Breach of Agreement: CCAs, Easements and Other Agreements

Landholders across the region have entered into a vast number of agreements with resource companies authorising some form of mining development on their land. Many have signed Conduct and Compensation Agreements (CCAs) with coal seam gas companies for the construction and operation of CSG development on their land. CCAs are significant in that the agreement allows for the co-usage of the land over a considerable period of time and in most cases up to 30 years and beyond. Various types of associated agreements and easements such as pipeline easements, powerline easements, water supply agreements, gravel agreements and land acquisition agreements are likewise in place across the Surat basin. We are increasingly finding that resource companies are acting in breach of…