Proposed Changes to Resources Legislation – Landowner rights may be impacted
The Mineral and Energy Resources (Common Provisions) Bill 2014 has been introduced to parliament. If this legislation is passed, it will change the framework for dealing with the resource sector. The intent of the Bill is to provide a uniform legislative framework for dealing with all resource sectors. For example, by ensuring that there is a uniform definition of Restricted Land between the Coal Seam Gas and mineral exploration sectors.
The proposed changes that have the greatest impact on landowners are:
- expanding the jurisdiction of the Land Court to allow the Court to make a determination on matters relating to conduct issues and provide the Land Court with jurisdiction to examine the behaviours of parties during the negotiation of Conduct and Compensation Agreements;
- allowing an executed Conduct and Compensation Agreement to be noted on the relevant property title by the Registrar of Titles. The resource company will be responsible for the costs of registering the Conduct and Compensation Agreement;
- implementing a single Restricted Land framework across all resource sectors.
Restricted Land
It appears that the new framework will only apply to resource authorities applied for and granted after the commencement of the Bill (if passed). Restricted Land is defined as land within a prescribed distance (which has not yet been specified by the legislation) of any of the following:
- a permanent building used, at the date the resource authority was granted, for the purpose of a residence, a place of worship, or a childcare centre, hospital or library;
- an area used, at the date the resource authority was granted, for the purpose of a school, a cemetery or burial place or used for aquaculture, intensive animal feedlotting, pig keeping or poultry farming within the meaning of the part 1 of schedule 2 of the Environmental Protection Regulation 2008 (Qld);
- a building used, at the date the resource authority was granted, for a business or other purpose if it is reasonably considered that the building cannot be easily relocated and the building cannot co-exist with authorised activities carried out under resource authorities; or
- another building or area prescribed by regulation.
A regulation may also prescribe buildings or areas that will not constitute Restricted Land.
While the definition arguably widens the scope of Restricted Land (for certain industries such as aquaculture), it clearly removes areas that are currently considered Restricted Land. For example, principal stockyards and dams are currently Restricted Land but will not be under the new definition. This will change the bargaining power for graziers in a substantial way when dealing with resource companies.
The Mineral Resources Act (MRA) currently excludes areas of Restricted Land from being included in the surface area of a mining lease without the landowner’s consent. This gives a landowner substantial bargaining power if there is Restricted Land within the mining lease area. The Bill proposes to amend the MRA to allow a mining lease to be granted over the Restricted Land on the basis that the owner’s consent is still required before any authorised activity can take place within the Restricted Land. However, if the Minister should determine that Restricted Land and the activities of the Resource Company cannot co-exist, then the Minister may allow access to the Restricted Land where compensation has been determined by agreement or the Land Court.
These amendments would take away a landowner’s right to refuse consent to access surface areas of the mining lease that are within Restricted Land areas.
Rural Law News
Amendments to the Land Act will allow greater opportunities for investment and acquisition by entities such as companies and trusts:
- Removal of corporation and aggregation restrictions – the provisions which had prevented companies from holding certain state leasehold and limited the number that could be held by individuals will be removed
- Rolling term lease extensions will simplify the renewal process for state leasehold and give greater certainty to the industry. Rolling term leases allow for the extension of the lease equal to the original term of the lease and land management agreements will not be required as a matter of course
Contact us today on 07 4724 1016 to discuss any of these issues.
Once proclaimed the law will:
- abolish the statutory maximum commission that real estate agents can charge
- remove the requirement for real estate agents to disclose to buyers the commission they are charging
- abolish certain consumer protection measures, including the Warning Statement and Body Corporate Information Sheet that presently must be attached to residential contracts
- abolish price guides for properties sold at auction
- abolish the restriction that prevents an agent receiving a commission when they have a beneficial interest in a property as buyer or seller
- remove the statutory cooling-off period for certain buyers who enter into contracts for properties passed in at auctions
- remove the requirement of an independent solicitor’s certificate to be provided to waive or shorten the cooling-off period
Once proclaimed the new Property Occupations Act 2014 will change the real estate industry. It should simplify the process for the sale and purchase of residential property. If you want to know more, contact us on 07 4724 1016
Employment Law News
A recent Federal Court decision involving Qantas Airways found that an employer had an implied right to seek a medical report where the employee had only provided a basic medical sick certificate, Australian and International Pilots Association v Qantas Airways Ltd [2014] FCA 32 (6 February 2014). Managing employees on extended sick leave can be a problematic and difficult issue. Legal advice should be obtained. Employers though should not rely on implied rights. It is prudent to ensure employment contracts contain express terms requiring employees to provide medical reports in certain circumstances.
Contact us on 07 4724 1016 to discuss your employment law concerns.
