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New South Wales Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 Explanatory note This explanatory note relates to this Bill as introduced into Parliament. This Bill is cognate with the Mining and Petroleum Legislation Amendment (Grant of Coal and Petroleum Prospecting Titles) Bill 2015. Overview of Bill The object of this Bill is to amend the Mining Act 1992 (the Mining Act) and the Petroleum (Onshore) Act 1991 (the Petroleum Act) to give effect to the recommendations of a review undertaken by Mr Bret Walker SC in June 2014 entitled Examination of the Land Access Arbitration Framework -- Mining Act 1992 and Petroleum (Onshore) Act 1991. The Bill also makes other miscellaneous amendments to those Acts to make further provision with respect to that land access arbitration framework. The Bill deals with the following matters: (a) the composition of the Arbitration Panel under the Mining Act (which performs the functions of the Arbitration Panel under the Petroleum Act), (b) negotiating access arrangements under the Acts, (c) enabling an access code to be prescribed for the purposes of the Acts (which may include mandatory provisions that are taken to form part of access arrangements), (d) mediation and arbitration of access arrangements, (e) enabling the Secretary of the Department of Industry, Skills and Regional Development (the Secretary) to approve arbitration procedures for the purposes of mediations and arbitrations under the Acts, (f) costs for negotiating, mediating and arbitrating access arrangements, (g) the establishment of public registers of access arrangements under the Acts, b2014-086.d24 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note (h) allowing the Land and Environment Court to determine access arrangements if the court is already considering an application relating to operations near dwelling-houses, gardens or significant improvements on the land concerned, (i) clarifying the extent of the general immunity of landholders from liability for other persons' acts or omissions on the landholder's land, (j) excluding seismic surveys on certain roads from prohibitions of certain operations within a certain distance of dwelling-houses, gardens or significant improvements, (k) clarifying the operation of certain provisions relating to operations in proximity to significant improvements and enabling regulations to specify works and structures that are and are not such improvements, (l) renewal of exploration licences and assessment leases under the Petroleum Act over areas of land smaller than that comprised in the application for renewal, (m) clarifying the rights of holders of production leases, (n) extending the access arrangement regime that applies in relation to exploration licences under the Petroleum Act to production leases under that Act, (o) assessment of compensable loss suffered or likely to be suffered as a result of the exercise of rights under petroleum titles, (p) savings, transitional and other miscellaneous matters. The Bill also provides for the cancellation of certain petroleum exploration licences that are comprised of land within national parks. Outline of provisions Clause 1 sets out the name (also called the short title) of the proposed Act. Clause 2 provides for the commencement of the proposed Act on a day or days to be appointed by proclamation. Schedule 1 Amendment of Mining Act 1992 No 29 Seismic surveys on roads Schedule 1 [1] and [2] amend sections 31 and 49 of the Mining Act to provide that those provisions (which prohibit the exercise of rights conferred by exploration licences and assessment leases on land on which is situated, or within a specified proximity of, dwelling-houses, gardens or significant improvements) do not apply to seismic surveys on roads, if the licence or lease holder has given written notice of at least 21 days (or such other period as is prescribed by the regulations) of the carrying out of the seismic survey to the owner of the dwelling-house, garden or significant improvement concerned (and, in the case of a dwelling-house, the occupant). Amendments relating to activities on land on or near dwelling-houses, gardens and significant improvements on land Schedule 1 [1] and [2] also amend sections 31 and 49 of the Mining Act and Schedule 1 [3] amends section 62 of that Act to provide that the holder of the exploration licence, assessment lease or applicant for the mining lease is to pay the costs of the owner of the dwelling-house, garden or improvement (or occupant of the dwelling-house) in those proceedings in the Land and Environment Court relating to resolve disputes as to land is or is not covered by those sections. Schedule 1 [27] substitutes the definition of significant improvement in the Dictionary to the Mining Act. The proposed definition provides that a significant improvement on land, in relation to an authorisation or an access arrangement, is a work or structure that: (a) is a substantial and valuable improvement to the land, and (b) is reasonably necessary for the operation of the landholder's lawful business or use of the land, and Page 2 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note (c) is fit for its purpose (immediately or with minimal repair), and (d) cannot reasonably co-exist with the exercise of rights under the authorisation or the access arrangement without hindrance to the full and unencumbered operation or functionality of the work or structure, and (e) cannot reasonably be relocated or substituted without material detriment to the landholder, and includes any work or structure prescribed by the regulations for the purposes of the definition, but does not include any work or structure excluded from the definition by the regulations. Composition of Arbitration Panel Schedule 1 [4] substitutes section 139 of the Mining Act relating to the establishment of the Arbitration Panel. The proposed new section 139 establishes the Arbitration Panel and deals with the following matters: (a) providing that, when appointing persons as members of the Arbitration Panel, the Minister for Industry, Resources and Energy (the Minister) must comply with any processes or procedures for such appointments set out in the regulations, (b) setting out that a person is not eligible for appointment as a member of the Arbitration Panel unless the person meets the eligibility criteria (if any) set out in the regulations, (c) the term of office and conditions of members of the Arbitration Panel. The proposed section also requires the Secretary to keep and maintain a register of the following: (a) the name, business address and contact information of each member of the Arbitration Panel, (b) the qualifications and experience of each member (as at the time of the member's most recent appointment), (c) details of any actual and potential conflicts of interest disclosed to the Secretary in compliance with a condition of the member's appointment (if such a condition has been imposed), (d) any other matter relating to members of the Arbitration Panel as the regulations may prescribe. The register must be made available for inspection on the website of the Department of Industry, Skills and Regional Development (the Department). Access arrangements--general Schedule 1 [7] inserts proposed sections 141A and 141B into the Mining Act. Proposed section 141A provides that the regulations may prescribe a code (an access code) containing provisions relating to access to land by the holder of a prospecting title and the carrying out of activities on that land by the holder. The regulations may designate any or all of the provisions of an access code as mandatory provisions. An access code may contain non-binding guidelines relating to negotiating and agreeing access arrangements. Proposed section 141B provides that all access arrangements are taken to include provisions in the same terms as the mandatory provisions of the access code. A provision of an access arrangement has no effect to the extent that it contains obligations on the holder of the prospecting title that are less stringent than those in a mandatory provision. Negotiating access arrangements Schedule 1 [8] amends section 142 of the Mining Act to provide that the holder of a prospecting title and the landholder of the land concerned must negotiate on an access arrangement in good faith. The amendments to section 142 of the Mining Act also provide that: (a) the holder of the prospecting title must pay the reasonable costs of the landholder of the land concerned in participating in negotiating the access arrangement, and Page 3 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note (b) the maximum amount of those costs is the amount set out by the Minister by order published in the Gazette (and deals with the making of those orders). Schedule 1 [5] makes a consequential omission. Mediation and arbitration of access arrangements Schedule 1 [6] amends section 141 of the Mining Act to provide that both a landholder of land subject to an access arrangement and the holder of the relevant prospecting title may request the appointment of an arbitrator following a contravention of the access arrangement by the title holder. Schedule 1 [9] substitutes section 144 (2) of the Mining Act to provide that the holder of the prospecting title concerned must pay an application fee for the appointment of an arbitrator under the section. Schedule 1 [10] substitutes section 145 of, and inserts proposed sections 145A and 145B into, the Mining Act. Proposed new section 145 provides that, as soon as practicable after having been appointed, an arbitrator must arrange and conduct a mediation of the question of access to the land concerned. Proposed section 145A contains provisions dealing with the mediation, including the termination of the mediation. The provision requires the parties to a mediation to participate in the mediation in good faith. Proposed section 145B provides that if the mediation is unsuccessful, the arbitrator must, as soon as practicable after its conclusion arrange and conduct a hearing of the question of access to the land concerned. Schedule 1 [12] makes a consequential omission. Schedule 1 [11] substitutes section 146 of the Mining Act to provide that, at any mediation of, or hearing into, the question of access to any land by the holder of a prospecting title, the holder and each landholder: (a) are entitled to appear and be heard, and (b) may be represented by an agent or by an Australian legal practitioner. Schedule 1 [13] amends section 148 of the Mining Act to provide that the parties to an arbitration must participate in the arbitration in good faith and that an arbitration may be terminated at any time at the request of the parties. Schedule 1 [14] inserts proposed sections 148A and 148B into the Mining Act. Proposed section 148A provides that the Secretary may, by order published in the Gazette, approve arbitration procedures for the conduct of mediations and arbitrations under Division 2 (Access arrangements for prospecting titles) of Part 8 (Authorities generally) of the Mining Act (approved arbitration procedures). The approved arbitration procedures may include guidance materials for the benefit of the parties and arbitrators. Unless the parties and the arbitrator agree otherwise, mediation and arbitration under Division 2 is to be conducted in accordance with the provisions of the approved arbitration procedures. In the event of an inconsistency between a provision of the approved arbitration procedures and a provision of the Mining Act or of the regulations, the provision of the Mining Act or of the regulations prevails. If a matter is not provided for in the Mining Act, the regulations or the approved arbitration procedures, the procedure at a mediation or a hearing is to be as determined by the arbitrator. The proposed section contains other provisions dealing with the contents and making of approved arbitration procedures. Proposed section 148B provides that an arbitrator conducting a mediation or a hearing may enter the land concerned and inspect it at a reasonable time after giving reasonable notice to the landholder. Schedule 1 [17] makes a consequential amendment. Page 4 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note Costs of arbitrating of access arrangements Schedule 1 [14] also inserts proposed section 148C into the Mining Act. Proposed section 148C provides that the holder of the prospecting title must pay the reasonable costs of the landholder of the land concerned in participating in the mediation and arbitration. The maximum amount of reasonable costs is the amount set out by the Minister by order published in the Gazette. Nothing in the proposed section prevents a holder of a prospecting title, at the holder's discretion, paying other amounts to a landholder. Schedule 1 [15] inserts proposed section 151A into the Mining Act to provide that the arbitrator (as part of the determination of the arbitration or on the termination of the arbitration at the request of the parties) must determine: (a) if the parties have disputed a payment to cover the landholder's costs in negotiating the access arrangement (as referred to in section 142 (as amended by Schedule 1 [8])), the amount of that payment, and (b) the reasonable costs of the landholder in participating in the mediation and arbitration (as referred to in proposed section 148C). When determining a payment to cover the reasonable costs of the landholder in participating in the mediation and arbitration, the arbitrator must: (a) consider whether or not the landholder has acted unreasonably in the negotiation, mediation or arbitration, and (b) deduct an amount that in the opinion of the arbitrator represents the amount by which the unreasonable conduct increased the costs of the negotiation, mediation or arbitration. Schedule 1 [16] makes a consequential omission. Schedule 1 [18] makes a consequential amendment. Schedule 1 [19] inserts proposed section 155 (8) and (9) into the Mining Act to provide that the holder of the prospecting title must pay the reasonable costs of the landholder of the land concerned in a review of a determination of an arbitrator in the Land and Environment Court. Register of arbitrated access arrangements Schedule 1 [20] inserts proposed section 156A into the Mining Act to provide that the Secretary is to keep and maintain a register of all final access arrangements provided to him or her. The register is to be made available for public inspection on the Department's website. As soon as is practicable after an access arrangement is determined by an arbitrator, the holder of the relevant prospecting title must provide the Secretary with a copy of the final access arrangement. Failure to comply with this provision is an offence which carries a maximum penalty of 100 penalty units (in the case of a corporation) or 50 penalty units (in the case of an individual). Variation of access arrangements Schedule 1 [21] substitutes section 157 of the Mining Act to deal with variation of access arrangements. Miscellaneous arbitration amendments Schedule 1 [22] inserts proposed sections 158A and 158B into the Mining Act. Proposed section 158A provides that if: (a) a party applied to the Land and Environment Court for a determination of a matter under section 31 (5) or 49 (5) (relating to the exercise of rights conferred by exploration licences and assessment leases on land on which is situated, or within a specified proximity to, dwelling-houses, gardens or significant improvements), and Page 5 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note (b) no access arrangement relates to the land concerned, either party to those Court proceedings may apply to the Court to have the Court determine an access arrangement under Division 2 of Part 8 of the Mining Act in relation to the land. The proposed section contains provisions dealing with such applications to the Court. Proposed section 158B provides that the Secretary may remove an arbitrator in certain circumstances and deals with the consequences of such a removal. Amendments relating to general immunity of landholders Schedule 1 [23] amends section 383C of the Mining Act to make it clear that the landholder of land within which any person (other than the landholder) is authorised to exercise any power or right by or under any other Act in connection with any activity under an authority, mineral claim, opal prospecting licence or permit under the Mining Act is not subject to any action, liability, claim or demand arising as a consequence of that person's acts or omissions in the exercise, or purported exercise, of any such power or right. Schedule 1 [24] amends section 383C of the Mining Act to make it clear that the section does not apply to the extent that the action, liability, claim or demand arises from anything done by the landholder with the intention to cause harm or recklessly. Savings and transitional amendments Schedule 1 [25] and [26] contain amendments of a savings and transitional nature. Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 Renewal of titles over smaller area of land Schedule 2 [2] inserts proposed section 19 (6) and (7) into the Petroleum Act to make it clear that an exploration licence or assessment lease may be renewed over a smaller area of land from the area of land over which the renewal of the licence or lease is sought, but not so as to include any land that was not subject to the licence or lease immediately before the renewal. If an exploration licence or assessment lease is renewed as to part only of the land to which the application for renewal relates, the licence or lease ceases to have effect in relation to the remainder of the land on the date on which the renewal takes effect. Rights of holders of production leases Schedule 2 [3] substitutes section 41 of the Petroleum Act to more thoroughly set out the rights of holders of production leases. The holder of a production lease may, in accordance with the conditions of the lease: (a) prospect in and on the land comprised in the lease for petroleum, and (b) conduct petroleum mining operations in and on the land comprised in the lease, and (c) construct and maintain on the land such works, buildings, plant, waterways, roads, pipelines, dams, reservoirs, tanks, pumping stations, tramways, railways, telephone lines, electric powerlines and other structures and equipment as are necessary for the full enjoyment of the lease or to fulfil the lessee's obligations under it. While a production lease is in force, the holder of the lease and any person acting as agent or employee of the holder, or delivering goods or providing services to the holder, for the purpose of a requirement of or an activity authorised by the lease may: (a) for that purpose enter and be on the land included in the lease, and (b) do anything so authorised or required. Page 6 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note However, the proposed new section provides that despite this, a holder of a production lease may carry out activities on the land comprised in the lease only in accordance with an access arrangement applying to that land. Access arrangements--general Schedule 2 [4] and [5] amend section 69D (1) and (2) of the Petroleum Act to provide that an access arrangement must specify the compensation that is payable to each landholder of the land concerned as a consequence of the holder of the prospecting title carrying out prospecting operations on the land (rather than this being a matter that an access arrangement may or may not make provision). Schedule 2 [7] amends section 69D (4) of the Petroleum Act to provide that both a landholder of land subject to an access arrangement and the holder of the relevant prospecting title may request the appointment of an arbitrator following a contravention of the access arrangement by the title holder. Schedule 2 [8] inserts proposed sections 69DA and 69DB into the Petroleum Act. Proposed section 69DA provides that the regulations may prescribe a code (an access code) containing provisions relating to access to land by the holder of a prospecting title and the carrying out of activities on that land by the holder. The regulations may designate any or all of the provisions of an access code as mandatory provisions. An access code may contain non-binding guidelines relating to negotiating and agreeing access arrangements. Proposed section 69DB provides that all access arrangements are taken to include provisions in the same terms as the mandatory provisions of the access code. A provision of an access arrangement has no effect to the extent that it contains obligations on the holder of the prospecting title that are less stringent than those in a mandatory provision. Negotiating access arrangements Schedule 2 [9] amends section 69E of the Petroleum Act to provide that the holder of a prospecting title and the landholder of the land concerned must negotiate on an access arrangement in good faith. The amendments to section 69E of the Petroleum Act also provide that: (a) the holder of the prospecting title must pay the reasonable costs of the landholder of the land concerned in participating in negotiating the access arrangement, and (b) the maximum amount of those costs is the amount set out by the Minister by order published in the Gazette (and deals with the making of those orders). Schedule 2 [6] makes a consequential omission. Mediation and arbitration of access arrangements Schedule 2 [10] substitutes section 69G (2) of the Petroleum Act to provide that the holder of the prospecting title concerned must pay an application fee for the appointment of an arbitrator under the section. Schedule 2 [11] substitutes section 69H of, and inserts proposed sections 69HA and 69HB into, the Petroleum Act. Proposed new section 69H provides that, as soon as practicable after having been appointed, an arbitrator must arrange and conduct a mediation of the question of access to the land concerned. Proposed section 69HA contains provisions dealing with the mediation, including the termination of the mediation. The provision requires the parties to a mediation to participate in the mediation in good faith. Proposed section 69HB provides that if the mediation is unsuccessful, the arbitrator must, as soon as practicable after its conclusion arrange and conduct a hearing of the question of access to the land concerned. Page 7 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note Schedule 2 [13] makes a consequential omission and Schedule 2 [19] makes a consequential amendment. Schedule 2 [12] substitutes section 69I of the Petroleum Act to provide that, at any mediation of, or hearing into, the question of access to any land by the holder of a prospecting title, the holder and each landholder: (a) are entitled to appear and be heard, and (b) may be represented by an agent or by an Australian legal practitioner. Schedule 2 [14] amends section 69K of the Petroleum Act to provide that the parties to an arbitration must participate in the arbitration in good faith. Schedule 2 [15] inserts proposed sections 69KA and 69KB into the Petroleum Act. Proposed section 69KA provides that the Secretary may, by order published in the Gazette, approve arbitration procedures for the conduct of mediations and arbitrations under Part 4A (Access arrangements for prospecting titles) of the Petroleum Act (approved arbitration procedures). The approved arbitration procedures may include guidance materials for the benefit of the parties and arbitrators. Unless the parties and the arbitrator agree otherwise, mediation and arbitration under Part 4A is to be conducted in accordance with the provisions of the approved arbitration procedures. In the event of an inconsistency between a provision of the approved arbitration procedures and a provision of the Petroleum Act or of the regulations, the provision of the Petroleum Act or of the regulations prevails. If a matter is not provided for in the Petroleum Act, the regulations or the approved arbitration procedures, the procedure at a mediation or a hearing is to be as determined by the arbitrator. The proposed section contains other provisions dealing with the contents and making of approved arbitration procedures. Proposed section 69KB provides that an arbitrator conducting a mediation or a hearing may enter the land concerned and inspect it at a reasonable time after giving reasonable notice to the landholder. Schedule 2 [18] makes a consequential amendment. Costs of arbitrating access arrangements Schedule 2 [15] also inserts proposed section 69KC into the Petroleum Act. Proposed section 69KC provides that the holder of the prospecting title must pay the reasonable costs of the landholder of the land concerned in participating in the mediation and arbitration. The maximum amount of reasonable costs is the amount set out by the Minister by order published in the Gazette. Nothing in the proposed section prevents a holder of a prospecting title, at the holder's discretion, paying other amounts to a landholder. Schedule 2 [16] inserts proposed section 69NA into the Petroleum Act to provide that the arbitrator (as part of the determination of the arbitration or on the termination of the arbitration at the request of the parties) must determine: (a) if the parties have disputed a payment to cover the landholder's costs in negotiating the access arrangement (as referred to in section 69E (as amended by Schedule 2 [9])), the amount of that payment, and (b) the reasonable costs of the landholder in participating in the mediation and arbitration (as referred to in proposed section 69KC). When determining a payment to cover the reasonable costs of the landholder in participating in the mediation and arbitration, the arbitrator must: (a) consider whether or not the landholder has acted unreasonably in the negotiation, mediation or arbitration, and (b) deduct an amount that in the opinion of the arbitrator represents the amount by which the unreasonable conduct increased the costs of the negotiation, mediation or arbitration. Schedule 2 [17] makes a consequential omission. Page 8 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note Schedule 2 [20] inserts proposed section 69R (8) and (9) into the Petroleum Act to provide that the holder of the prospecting title must pay the reasonable costs of the landholder of the land concerned in a review of a determination of an arbitrator in the Land and Environment Court. Register of arbitrated access arrangements Schedule 2 [21] inserts proposed section 69SA into the Petroleum Act to provide that the Secretary is to keep and maintain a register of all final access arrangements provided to him or her. The register is to be made available for public inspection on the Department's website. As soon as is practicable after an access arrangement is determined by an arbitrator, the holder of the relevant prospecting title must provide the Secretary with a copy of the final access arrangement. Failure to comply with this provision is an offence which carries a maximum penalty of 100 penalty units (in the case of a corporation) or 50 penalty units (in the case of an individual). Variation of access arrangements Schedule 2 [22] substitutes section 69T of the Petroleum Act to deal with variation of access arrangements. Miscellaneous arbitration amendments Schedule 2 [23] inserts proposed sections 69V and 69W into the Petroleum Act. Proposed section 69V provides that if: (a) a party applied to the Land and Environment Court for a determination of a matter under section 72 (4) (relating to the exercise of rights conferred by exploration licences and assessment leases on land on which is situated, or in specified proximity to, dwelling-houses, gardens, vineyards, orchards or significant improvement), and (b) no access arrangement relates to the land concerned, either party to those Court proceedings may apply to the Court to have the Court determine an access arrangement in relation to the land. The proposed section contains provisions dealing with such applications to the Court. Proposed section 69W provides that the Secretary may remove an arbitrator in certain circumstances and deals with the consequences of such a removal. Access arrangements for production leases Schedule 2 [24] inserts Part 4B (section 69X) into the Petroleum Act. The new Part provides that Part 4A (which relates to access arrangements for prospecting titles) is, with certain exceptions, to extend to access arrangements for the purpose of conducting petroleum mining operations under a production lease as if references in that Part to: (a) a prospecting title were references to a production lease, and (b) prospecting operations were references to petroleum mining operations. The extension of Part 4A by this proposed section is to be subject to any necessary changes and any other modification prescribed by the regulations. Schedule 2 [1] makes a consequential amendment. Amendments relating to activities on or near land with dwelling-houses, gardens, vineyards, orchards or significant improvements Schedule 2 [25]-[27] amend section 72 of the Petroleum Act to provide for a definition of significant improvement for the purposes of that section (which prohibits the exercise of rights conferred by a petroleum title on land on which is situated, or within a specified proximity to, dwelling-houses, gardens, vineyards, orchards or certain improvements). The proposed definition provides that a significant improvement on land, in relation to a petroleum title or an access arrangement, is a work or structure that: (a) is a substantial and valuable improvement to the land, and Page 9 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note (b) is reasonably necessary for the operation of the landholder's lawful business or use of the land, and (c) is fit for its purpose (immediately or with minimal repair), and (d) cannot reasonably co-exist with the exercise of rights under the petroleum title or the access arrangement without hindrance to the full and unencumbered operation or functionality of the work or structure, and (e) cannot reasonably be relocated or substituted without material detriment to the landholder, and includes any work or structure prescribed by the regulations for the purposes of the definition, but does not include any work or structure excluded from the definition by the regulations. Schedule 2 [27] also amends section 72 of that Act to provide that the holder of the petroleum title is to pay the costs of the owner of the dwelling-house, garden, vineyard, orchard or significant improvement (or occupant of the dwelling-house) in proceedings in the Land and Environment Court relating to resolve disputes as to whether land is or is not covered by the section. Seismic surveys on roads Schedule 2 [27] also provides that section 72 (which prohibits the exercise of rights conferred by a petroleum title on land on which is situated, or within a specified proximity to, dwelling-houses, gardens, vineyards, orchards or significant improvements) is not to apply to seismic surveys on roads, if the title holder has given written notice of at least 21 days (or such other period as is prescribed by the regulations) of the carrying out of the seismic survey to the owner of the dwelling-house, garden, vineyard, orchard or significant improvement concerned (and, in the case of a dwelling-house, the occupant). Compensation for loss Schedule 2 [28] inserts proposed section 107A into the Petroleum Act to provide for a definition of compensable loss for the purposes of Part 11 (Compensation) of that Act. The definition is substantially the same as the definition in section 262 of the Mining Act. Schedule 2 [29] amends section 107 of the Petroleum Act to make it clear that on the granting of a petroleum title, each person having any estate or interest in any land becomes entitled to compensation for any such compensable loss suffered, or likely to be suffered, by the person as a result of the exercise of the rights conferred by the title or by an access arrangement in respect of the title. Schedule 2 [30] inserts proposed section 108 (3) into the Petroleum Act to make it clear that section 108 (2) (which enables the Land and Environment Court to assess the amount of compensation in certain circumstances) does not apply to compensation that is to be determined under an access arrangement that is required to be agreed or determined in accordance with Part 4A or 4B of the Petroleum Act. Schedule 2 [31]-[34] and [36] make consequential and law revision amendments. Schedule 2 [35] inserts proposed section 109 (4) into the Petroleum Act to make it clear that any court, person or body making an assessment of compensation under that section is to have regard to the matters (if any) prescribed by the regulations. Amendments relating to general immunity of landholders Schedule 2 [37] inserts proposed section 141 (1) (a1) into the Petroleum Act to make it clear that the landholder of land within which any person (other than the landholder) is authorised to exercise any power or right by or under any other Act in connection with any activity under a petroleum title under the Petroleum Act is not subject to any action, liability, claim or demand arising as a consequence of that person's acts or omissions in the exercise, or purported exercise, of any such power or right. Schedule 2 [38] inserts proposed section 141 (1A) into the Petroleum Act to make it clear that the section does not apply to the extent that the action, liability, claim or demand arises from anything done by the landholder with the intention to cause harm or recklessly. Page 10 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Explanatory note Savings and transitional amendments Schedule 2 [39] and [40] contain amendments of a savings and transitional nature. Cancellation of titles relating to national parks Schedule 2 [41] inserts a Schedule into the Petroleum Act to cancel any exploration licence, or part of an exploration licence, that is comprised of land within a national park (either wholly or in part, as the case requires). The proposed Schedule contains other provisions dealing with the consequences of such cancellations. Page 11 First print New South Wales Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 Contents Page 1 Name of Act 2 2 Commencement 2 Schedule 1 Amendment of Mining Act 1992 No 29 3 Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 15 b2014-086.d24 New South Wales Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 No , 2015 A Bill for An Act to amend the Mining Act 1992 and the Petroleum (Onshore) Act 1991 in relation to land access mediation and arbitration processes; and for related purposes. Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] The Legislature of New South Wales enacts: 1 1 Name of Act 2 This Act is the Mining and Petroleum Legislation Amendment (Land Access 3 Arbitration) Act 2015. 4 2 Commencement 5 This Act commences on a day or days to be appointed by proclamation. 6 Page 2 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 Schedule 1 Amendment of Mining Act 1992 No 29 1 [1] Section 31 Dwelling-houses, gardens and significant improvements 2 Insert after section 31 (5): 3 (6) The holder of the exploration licence is to pay the costs of the owner of the 4 dwelling-house, garden or improvement (or occupant of the dwelling-house) 5 in those proceedings in the Land and Environment Court. 6 (7) This section does not apply to the holder of an exploration licence who carries 7 out a seismic survey on a road within the meaning of the Road Transport Act 8 2013, but only if the holder has given written notice of at least 21 days (or such 9 other period as is prescribed by the regulations) of the carrying out of the 10 seismic survey to the owner of the dwelling-house, garden or significant 11 improvement concerned (and, in the case of a dwelling-house, the occupant). 12 [2] Section 49 Dwelling-houses, gardens and significant improvements 13 Insert after section 49 (5): 14 (6) The holder of the assessment lease is to pay the costs of the owner of the 15 dwelling-house, garden or improvement (or occupant of the dwelling-house) 16 in those proceedings in the Land and Environment Court. 17 (7) This section does not apply to the holder of an assessment lease who carries 18 out a seismic survey on a road within the meaning of the Road Transport Act 19 2013, but only if the holder has given written notice of at least 21 days (or such 20 other period as is prescribed by the regulations) of the carrying out of the 21 seismic survey to the owner of the dwelling-house, garden or significant 22 improvement concerned (and, in the case of a dwelling-house, the occupant). 23 [3] Section 62 Dwelling-houses, gardens and significant improvements 24 Insert after section 62 (6A): 25 (6B) The applicant for the mining lease is to pay the costs of the owner of the 26 dwelling-house, garden or improvement (or occupant of the dwelling-house) 27 in those proceedings in the Land and Environment Court. 28 [4] Section 139 29 Omit the section. Insert instead: 30 139 Arbitration Panel 31 (1) There is to be an Arbitration Panel. 32 (2) When appointing a person as a member of the Arbitration Panel, the Minister 33 must comply with any processes or procedures for such appointments set out 34 in the regulations. 35 (3) A person is not eligible for appointment as a member of the Arbitration Panel 36 unless the person meets the eligibility criteria (if any) set out in the regulations. 37 (4) A person is to be appointed as a member of the Arbitration Panel for the term 38 of office specified in the person's instrument of appointment, being a term not 39 exceeding the maximum period prescribed by the regulations. However, a 40 person may be appointed for an additional term or terms of office if: 41 (a) the person is eligible for appointment, and 42 (b) the Minister considers it appropriate to do so. 43 Page 3 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (5) The appointment of a member of the Arbitration Panel is subject to such 1 conditions as are determined by the Minister from time to time. 2 (6) Without limiting subsection (5), the Minister may determine conditions 3 relating to the following: 4 (a) remuneration and travelling and subsistence allowances, 5 (b) the disclosure to the Secretary of information, including any actual and 6 potential conflicts of interest, 7 (c) performance requirements to be met by the members of the Arbitration 8 Panel. 9 (7) The Secretary is to keep and maintain a register of the following: 10 (a) the name, business address and contact information of each member of 11 the Arbitration Panel, 12 (b) the qualifications and experience of each member (as at the time of the 13 member's most recent appointment), 14 (c) details of any actual and potential conflicts of interest disclosed to the 15 Secretary in compliance with a condition of the member's appointment 16 (if such a condition has been imposed), 17 (d) any other matter relating to members of the Arbitration Panel as the 18 regulations may prescribe. 19 (8) The register must be made available for public inspection on the Department's 20 website. 21 [5] Section 141 Matters for which access arrangement to provide 22 Omit section 141 (2A). 23 [6] Section 141 (4) 24 Insert "or the holder of a prospecting title" after "by the landholder". 25 [7] Sections 141A and 141B 26 Insert after section 141: 27 141A Access code 28 (1) The regulations may prescribe a code (an access code) containing provisions 29 relating to access to land by the holder of a prospecting title and the carrying 30 out of activities on that land by the holder. 31 (2) The regulations may designate any or all of the provisions of an access code 32 as mandatory provisions. 33 (3) An access code may contain non-binding guidelines relating to negotiating 34 and agreeing access arrangements. 35 141B Application of mandatory provisions of access codes 36 (1) An access arrangement is taken to include provisions in the same terms as the 37 mandatory provisions of the access code. 38 (2) A provision of an access arrangement has no effect to the extent that it contains 39 obligations on the holder of the prospecting title that are less stringent than 40 those in a mandatory provision. 41 Note. See also section 141 (3) which deals with inconsistency between provisions of 42 access arrangements and provisions of regulations. 43 Page 4 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 [8] Section 142 Holder of prospecting title to seek access arrangement 1 Insert after section 142 (2): 2 (2A) The holder of the prospecting title must pay the reasonable costs of the 3 landholder of the land concerned in participating in negotiating the access 4 arrangement. 5 (2B) The maximum amount of reasonable costs payable by the holder of the 6 prospecting title is the amount set out by the Minister by order published in the 7 Gazette. 8 (2C) In making the order, the Minister must have regard to the following: 9 (a) time spent participating in negotiating the access arrangement, 10 (b) legal costs of negotiating the access arrangement, 11 (c) costs of engaging experts as part of the negotiation process. 12 (2D) Nothing in this section prevents a holder of a prospecting title, at the holder's 13 discretion, paying other amounts to a landholder. 14 (2E) An order relating to costs may: 15 (a) apply generally or be limited in its application by reference to specified 16 exceptions or factors, or 17 (b) apply differently according to different factors of a specified kind, or 18 (c) authorise any matter or thing to be from time to time determined, 19 applied or regulated by any specified person or body, 20 or may do any combination of those things. 21 (2F) The regulations may make provision for or with respect to the payment of 22 costs under this section, including, but not limited to, the following: 23 (a) the timing or frequency of payments, 24 (b) evidence of costs incurred to be provided to the holder of the 25 prospecting title. 26 (2G) The holder of a prospecting title and the landholder of the land concerned must 27 negotiate on an access arrangement in good faith. 28 [9] Section 144 Appointment of arbitrator in default of agreement 29 Omit section 144 (2). Insert instead: 30 (2) At the same time as, or after, an application is made under this section, but 31 before an arbitrator is appointed, the holder of the prospecting title concerned 32 must pay the application fee prescribed by the regulations for the purposes of 33 this section. 34 [10] Sections 145, 145A and 145B 35 Omit section 145. Insert instead: 36 145 Arbitration process--mediation before arbitration hearing 37 (1) As soon as practicable after having been appointed, an arbitrator: 38 (a) must fix a time and place for conducting a mediation of the question of 39 access to the land concerned, and 40 (b) must cause notice of his or her appointment, and of the time and place 41 fixed for conducting the mediation, to be given to the holder of the 42 prospecting title and to each landholder. 43 Page 5 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (2) The arbitrator may, by a further notice served on the holder of the prospecting 1 title and on each landholder, vary the time or place fixed for conducting the 2 mediation. 3 (3) The arbitrator must, at the time and place fixed under this section, conduct a 4 mediation of the question of access to the land concerned. 5 145A Mediation 6 (1) An arbitrator conducting a mediation under this Division: 7 (a) must use his or her best endeavours to bring the parties to a settlement 8 acceptable to all of them, and 9 (b) may communicate with the parties collectively or separately, and 10 (c) must treat information obtained by the arbitrator from a party with 11 whom he or she communicates separately as confidential, unless that 12 party otherwise agrees. 13 (2) The parties to a mediation must participate in the mediation in good faith. 14 (3) A mediation terminates if: 15 (a) the parties agree to terminate the mediation, or 16 (b) any party terminates the mediation, by notice in writing, served on the 17 other parties and the arbitrator, or 18 (c) the arbitrator terminates the mediation, or 19 (d) the parties agree on an access arrangement. 20 (4) An arbitrator who has acted as mediator in a mediation that is terminated under 21 subsection (3) (a)-(c): 22 (a) may refuse to conduct the subsequent arbitration, and 23 (b) must not conduct the subsequent arbitration unless, at the time of or 24 after the termination of the mediation, all the parties to the arbitration 25 (including the arbitrator) consent in writing. 26 (5) If: 27 (a) an arbitrator has obtained confidential information from a party during 28 a mediation, and 29 (b) the mediation has been terminated under subsection (3) (a)-(c), and 30 (c) the parties have consented to the arbitrator conducting the subsequent 31 arbitration, 32 the arbitrator must, as soon as reasonably practical after that consent has been 33 given, disclose to all other parties to the arbitration so much of the information 34 as the arbitrator considers material to the arbitration. 35 (6) If the parties consent under subsection (4) (b), no objection may be taken to 36 the conduct of the subsequent arbitration by the arbitrator solely on the ground 37 that he or she has previously conducted a mediation in accordance with this 38 section. 39 (7) If the arbitrator refuses to conduct the subsequent arbitration under 40 subsection (4) (a) or the parties do not consent under subsection (4) (b), the 41 arbitrator's mandate is taken to have been terminated and a substitute 42 arbitrator may be appointed: 43 (a) by the parties, or 44 Page 6 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (b) by the Secretary, but only if the parties have been unable to agree on the 1 appointment of an arbitrator by the end of 7 days after the termination 2 of the mediation. 3 (8) Before a substitute arbitrator is appointed under this section, the holder of the 4 prospecting title concerned must pay the application fee prescribed by the 5 regulations for the purposes of this section. 6 (9) The substitute arbitrator is not required to conduct a mediation under this 7 Division. 8 145B Arbitration hearing 9 (1) If the mediation is unsuccessful, the arbitrator must, as soon as practicable 10 after its conclusion: 11 (a) fix a time and place for conducting a hearing of the question of access 12 to the land concerned, and 13 (b) cause notice of the time and place fixed for conducting the hearing to be 14 given to the holder of the prospecting title and to each landholder. 15 (2) The arbitrator may, by a further notice served on the holder of the prospecting 16 title and on each landholder, vary the time or place fixed for conducting the 17 hearing. 18 (3) The arbitrator must, at the time and place fixed under this section, conduct a 19 hearing into the question of access to the land concerned. 20 [11] Section 146 21 Omit the section. Insert instead: 22 146 Right of appearance 23 At any mediation of, or hearing into, the question of access to any land by the 24 holder of a prospecting title, the holder and each landholder: 25 (a) are entitled to appear and be heard, and 26 (b) may be represented by an agent or by an Australian legal practitioner. 27 [12] Section 147 Conciliation 28 Omit the section. 29 [13] Section 148 Conduct of arbitration 30 Omit section 148 (1). Insert instead: 31 (1) The parties to an arbitration must participate in the arbitration in good faith. 32 (1A) An arbitrator may terminate an arbitration at any time at the request of the 33 parties. 34 [14] Sections 148A, 148B and 148C 35 Insert after section 148: 36 148A Approved arbitration procedures 37 (1) The Secretary may, by order published in the Gazette, approve arbitration 38 procedures for the conduct of mediations and arbitrations under this Division 39 (approved arbitration procedures). 40 Page 7 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (2) The approved arbitration procedures may include guidance materials for the 1 benefit of the parties and arbitrators. 2 (3) The approved arbitration procedures may also include, but are not limited to, 3 the following: 4 (a) objectives and principles for arbitration, 5 (b) responsibilities of parties and the arbitrator in the arbitration process, 6 (c) stages and timeframes for the arbitration framework, 7 (d) processes for dealing with significant improvements, 8 (e) confidentiality, 9 (f) suspension of mediation or arbitration proceedings in certain 10 circumstances, 11 (g) production of evidence of costs incurred by landholders. 12 (4) Unless the parties and the arbitrator agree otherwise, mediation and arbitration 13 under this Division is to be conducted in accordance with the provisions of the 14 approved arbitration procedures. 15 (5) In the event of an inconsistency between a provision of the approved 16 arbitration procedures and a provision of this Act or of the regulations, the 17 provision of this Act or of the regulations prevails. 18 (6) If a matter is not provided for in this Act, the regulations or the approved 19 arbitration procedures, the procedure at a mediation or a hearing is to be as 20 determined by the arbitrator. 21 (7) Approved arbitration procedures take effect on the day on which the 22 procedures are published in the Gazette or, if a later day or days are specified 23 for that purpose, on the later day or days so specified. 24 (8) Sections 40 and 41 of the Interpretation Act 1987 apply to the approved 25 arbitration procedures under this section in the same way as they apply to 26 statutory rules within the meaning of that Act. 27 148B Site inspection by arbitrator 28 An arbitrator conducting a mediation or a hearing may enter the land 29 concerned and inspect it at a reasonable time after giving reasonable notice to 30 the landholder. 31 148C Costs of landholder participation in mediation and arbitration 32 (1) The holder of the prospecting title must pay the reasonable costs of the 33 landholder of the land concerned in participating in the mediation and 34 arbitration. 35 (2) The maximum amount of reasonable costs is the amount set out by the 36 Minister by order published in the Gazette. 37 (3) In making the order, the Minister must have regard to the following: 38 (a) time spent participating in the mediation and arbitration, 39 (b) legal costs in participating in the mediation and arbitration, 40 (c) costs of engaging experts as part of the mediation and arbitration 41 process. 42 (4) Nothing in this section prevents a holder of a prospecting title, at the holder's 43 discretion, paying other amounts to a landholder. 44 Page 8 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (5) An order relating to costs may: 1 (a) apply generally or be limited in its application by reference to specified 2 exceptions or factors, or 3 (b) apply differently according to different factors of a specified kind, or 4 (c) authorise any matter or thing to be from time to time determined, 5 applied or regulated by any specified person or body, 6 or may do any combination of those things. 7 [15] Section 151A 8 Insert after section 151: 9 151A Determination as to costs 10 (1) This section applies to an arbitrator in the following circumstances: 11 (a) as soon as practicable after an interim determination is taken to be a 12 final determination, 13 (b) on making a final determination under this Division, 14 (c) before terminating an arbitration at the request of the parties. 15 (2) The arbitrator must determine the following: 16 (a) if the parties have disputed a payment to cover the landholder's costs in 17 negotiating the access arrangement, the amount of that payment (in 18 accordance with section 142), and 19 (b) the reasonable costs of the landholder in participating in the mediation 20 and arbitration (in accordance with section 148C). 21 (3) When determining a payment to cover the reasonable costs of the landholder 22 in participating in the mediation and arbitration, the arbitrator must: 23 (a) consider whether or not the landholder has acted unreasonably in the 24 negotiation, mediation or arbitration, and 25 (b) deduct an amount that in the opinion of the arbitrator represents the 26 amount by which the unreasonable conduct increased the costs of the 27 negotiation, mediation or arbitration. 28 [16] Section 152 Costs of mediation and arbitration hearing 29 Omit section 152 (1). 30 [17] Section 154 Liability 31 Insert "a mediation or" after "purposes of". 32 [18] Section 155 Review of determination 33 Omit "(other than a determination referred to in section 147 (2))" from section 155 (1). 34 [19] Section 155 (8) and (9) 35 Insert after section 155 (7): 36 (8) The holder of the prospecting title must pay the reasonable costs of the 37 landholder of the land concerned in a review of a determination under this 38 section. 39 (9) The Land and Environment Court, in determining those reasonable costs, must 40 consider whether or not the landholder has acted unreasonably in the 41 negotiation, mediation, arbitration or review proceedings. 42 Page 9 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 [20] Section 156A 1 Insert after section 156: 2 156A Register of arbitrated access arrangements 3 (1) As soon as is practicable after an access arrangement is determined by an 4 arbitrator, the holder of the prospecting title must provide the Secretary with a 5 copy of the final access arrangement. 6 Maximum penalty: 100 penalty units (in the case of a corporation) or 7 50 penalty units (in the case of an individual). 8 (2) The Secretary is to keep and maintain a register of all final access 9 arrangements provided to him or her. 10 (3) The Secretary is not required to include in the register: 11 (a) personal information (within the meaning of the Privacy and Personal 12 Information Protection Act 1998) about an individual, or 13 (b) any other information prescribed by the regulations, or 14 (c) any other information that the Secretary determines should be kept 15 confidential. 16 (4) The register is to be made available for public inspection on the Department's 17 website. 18 [21] Section 157 19 Omit the section. Insert instead: 20 157 Variation of access arrangements 21 (1) An access arrangement may be varied: 22 (a) in accordance with the terms of the arrangement relating to its variation, 23 or 24 (b) by the agreement of the parties to the arrangement, or 25 (c) by an arbitrator under this section (whether or not the access 26 arrangement was determined by an arbitrator), or 27 (d) on application by any of the parties to the arrangement, by order of the 28 Land and Environment Court if the arrangement was determined by a 29 court or an arbitrator. 30 (2) A party to an access arrangement may, by written notice served on all the other 31 parties to the arrangement, request the parties to agree to the appointment of 32 an arbitrator. 33 (3) The parties to an access arrangement may agree to the appointment of any 34 person as an arbitrator. 35 (4) Sections 144-151 and 152-156 apply, with all necessary changes, in relation 36 to an arbitration under this section, subject to the following modifications: 37 (a) in the application of section 144 (1), the reference to a notice served in 38 accordance with section 143 is taken to be a reference to a notice served 39 in accordance with subsection (2), 40 Page 10 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (b) section 144 (2) does not apply and instead the following applies: 1 (2) Before an arbitrator is appointed under this section, the 2 party requesting the appointment of an arbitrator must pay 3 the application fee prescribed by the regulations for the 4 purposes of this section. 5 (c) section 148C does not apply and instead the following provision 6 applies: 7 148C Costs 8 Each party to the mediation and hearing conducted by the 9 arbitrator is to bear his or her own costs in relation to the 10 hearing. 11 (d) any other modification prescribed by the regulations. 12 (5) In this section, vary includes terminate. 13 [22] Sections 158A and 158B 14 Insert after section 158: 15 158A Court may determine access arrangement if already considering significant 16 improvements etc 17 (1) If: 18 (a) a party applied to the Land and Environment Court for a determination 19 of a matter under section 31 (5) or 49 (5), and 20 (b) no access arrangement relates to the land concerned, 21 either party to those Court proceedings may apply to the Court to have the 22 Court determine an access arrangement under this Division in relation to the 23 land. 24 (2) An application under this section must not be lodged within 28 days after the 25 holder of the prospecting title has served notice under section 142 of an 26 intention to obtain an access arrangement in respect of the land concerned. 27 (3) The Land and Environment Court may accept or reject the application. 28 (4) Subject to any order of the Land and Environment Court, an application under 29 this section operates to stay any other access arrangement mediation or 30 arbitration in relation to the land until the decision of the Land and 31 Environment Court on the application. 32 (5) If the Land and Environment Court decides to accept the application: 33 (a) the Land and Environment Court is, subject to the regulations, to 34 determine an access arrangement under this Division in relation to the 35 land, and 36 (b) any other access arrangement mediation or arbitration in relation to the 37 land is terminated. 38 158B Removal of Arbitration Panel arbitrator 39 (1) The Secretary may, subject to the regulations, remove an arbitrator who has 40 been appointed under section 144 or 145A (7) (b) if, after an investigation by 41 the Secretary following a complaint, the Secretary is satisfied: 42 (a) that: 43 (i) circumstances exist that give rise to justifiable doubts as to the 44 arbitrator's impartiality, or 45 Page 11 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (ii) the arbitrator is incapable of conducting the proceedings or there 1 are justifiable doubts as to the arbitrator's capacity to do so, or 2 (iii) the arbitrator has refused or failed properly to conduct the 3 proceedings, and 4 (b) that substantial injustice has been caused or will be caused to one or 5 more of the parties. 6 (2) If an arbitrator has been removed under subsection (1), the arbitrator's 7 mandate is taken to have been terminated and a substitute arbitrator is to be 8 appointed: 9 (a) by the parties, or 10 (b) by the Secretary, but only if the parties have been unable to agree on the 11 appointment of an arbitrator by the end of 7 days after the removal. 12 (3) The regulations may make provision for or with respect to the removal of 13 arbitrators under this section, including, but not limited to: 14 (a) the making of complaints to the Secretary, and 15 (b) investigations by the Secretary of complaints. 16 [23] Section 383C General immunity of landholders 17 Insert after section 383C (1) (a): 18 (a1) by or under any other Act in connection with any activity under an 19 authority, mineral claim, opal prospecting licence or permit under this 20 Act, or 21 [24] Section 383C (1A) 22 Insert after section 383C (1): 23 (1A) For the avoidance of doubt, subsection (1) does not apply to the extent that the 24 action, liability, claim or demand arose from anything done by the landholder: 25 (a) with the intention to cause harm, or 26 (b) recklessly. 27 [25] Schedule 6 Savings, transitional and other provisions 28 Insert after clause 1 (3): 29 (4) Any provision of the regulations made under this clause has effect despite 30 anything to the contrary in this Schedule. The regulations may make separate 31 savings and transitional provisions or amend this Schedule to consolidate the 32 savings and transitional provisions. 33 [26] Schedule 6 34 Insert at the end of the Schedule with appropriate Part and clause numbering: 35 Part Provisions consequent on enactment of Mining and 36 Petroleum Legislation Amendment (Land Access 37 Arbitration) Act 2015 38 Definition 39 In this Part, 2015 amending Act means the Mining and Petroleum Legislation 40 Amendment (Land Access Arbitration) Act 2015. 41 Page 12 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 Application of amendments relating to general arbitration procedures to 1 existing access arrangements and proposed access arrangements 2 (1) This clause applies to a proposed access arrangement for which notice had 3 been given under section 142 before the commencement of this clause, but 4 which was not agreed or determined before that commencement. 5 (2) Sections 144 (2), 145, 146, 147, 148 (1) and 155 (1), as in force immediately 6 before their amendment, substitution or repeal by the 2015 amending Act 7 continue to apply to access arrangements and proposed access arrangements 8 to which this clause applies. 9 (3) Sections 145A, 145B, 148B and 156A do not apply to access arrangements 10 and proposed access arrangements to which this clause applies. 11 Application of amendments relating to costs to existing access arrangements 12 and proposed access arrangements 13 (1) This clause applies to a proposed access arrangement for which notice had 14 been given under section 142 before the commencement of this clause, but 15 which has not been agreed or determined before that commencement. 16 (2) Sections 141 (2A) and 152 (1) as in force immediately before their repeal by 17 the 2015 amending Act continue to apply to access arrangements and proposed 18 access arrangements to which this clause applies. 19 (3) Sections 142 (2A)-(2D), 148C, 151A and 158A do not apply to access 20 arrangements and proposed access arrangements to which this clause applies. 21 Application of amendments relating to costs in Land and Environment Court 22 Sections 31 (6), 49 (6), 62 (6B) and 155 (8) and (9), as inserted by the 23 2015 amending Act, do not apply to proceedings in the Land and Environment 24 Court commenced, but not finally determined, before the commencement of 25 this clause. 26 Application of amendments relating to the definition of "significant 27 improvement" 28 The substitution of the definition of significant improvement in the Dictionary 29 to the Act by the 2015 amending Act does not apply in relation to the 30 following: 31 (a) any proceedings in the Land and Environment Court under section 31, 32 49, 62 or 188 of the Act, or 33 (b) any proceedings in that Court in relation to a dispute concerning an 34 access arrangement for which notice had been given under section 143 35 before the commencement of this clause, 36 that were commenced, but not finally determined, before the commencement 37 of this clause. 38 [27] Dictionary 39 Omit the definition of significant improvement. Insert instead: 40 significant improvement on land, in relation to an authorisation or an access 41 arrangement, means a work or structure that: 42 (a) is a substantial and valuable improvement to the land, and 43 (b) is reasonably necessary for the operation of the landholder's lawful 44 business or use of the land, and 45 (c) is fit for its purpose (immediately or with minimal repair), and 46 Page 13 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 1 Amendment of Mining Act 1992 No 29 (d) cannot reasonably co-exist with the exercise of rights under the 1 authorisation or the access arrangement without hindrance to the full 2 and unencumbered operation or functionality of the work or structure, 3 and 4 (e) cannot reasonably be relocated or substituted without material 5 detriment to the landholder, 6 and includes any work or structure prescribed by the regulations for the 7 purposes of this definition, but does not include any work or structure 8 excluded from this definition by the regulations. 9 Page 14 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 Schedule 2 Amendment of Petroleum (Onshore) Act 1991 1 No 84 2 [1] Section 3 Definitions 3 Insert in alphabetical order in section 3 (1): 4 access arrangement means an access arrangement under Part 4A or 4B. 5 [2] Section 19 Renewal of title 6 Insert after section 19 (5): 7 (6) The area of land over which an exploration licence or assessment lease is 8 renewed may differ from the area of land over which the renewal of the licence 9 or lease is sought, but not so as to include any land that was not subject to the 10 licence or lease immediately before the renewal. 11 (7) If an exploration licence or assessment lease is renewed as to part only of the 12 land to which the application for renewal relates, the licence or lease ceases to 13 have effect in relation to the remainder of the land on the date on which the 14 renewal takes effect. 15 [3] Section 41 16 Omit the section. Insert instead: 17 41 Rights of holders of production leases 18 (1) The holder of a production lease may, in accordance with the conditions of the 19 lease: 20 (a) prospect in and on the land comprised in the lease for petroleum, and 21 (b) conduct petroleum mining operations in and on the land comprised in 22 the lease, and 23 (c) construct and maintain on the land such works, buildings, plant, 24 waterways, roads, pipelines, dams, reservoirs, tanks, pumping stations, 25 tramways, railways, telephone lines, electric powerlines and other 26 structures and equipment as are necessary for the full enjoyment of the 27 lease or to fulfil the lessee's obligations under it. 28 (2) While a production lease is in force, the holder of the lease and any person 29 acting as agent or employee of the holder, or delivering goods or providing 30 services to the holder, for the purpose of a requirement of or an activity 31 authorised by the lease may: 32 (a) for that purpose enter and be on the land included in the lease, and 33 (b) do anything so authorised or required. 34 (3) Despite subsections (1) and (2), a holder of a production lease may carry out 35 activities on the land comprised in the lease only in accordance with an access 36 arrangement applying to that land. 37 [4] Section 69D Matters for which access arrangement to provide 38 Omit section 69D (1) (f). 39 Page 15 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 [5] Section 69D (2) 1 Omit the subsection. Insert instead: 2 (2) An access arrangement must specify the compensation that is payable to each 3 landholder of the land concerned as a consequence of the holder of the 4 prospecting title carrying out prospecting operations on the land. 5 [6] Section 69D (2A) 6 Omit the subsection. 7 [7] Section 69D (4) 8 Insert "or the holder of a prospecting title" after "by the landholder". 9 [8] Sections 69DA and 69DB 10 Insert after section 69D: 11 69DA Access code 12 (1) The regulations may prescribe a code (an access code) containing provisions 13 relating to access to land by the holder of a prospecting title and the carrying 14 out of activities on that land by the holder. 15 (2) The regulations may designate any or all of the provisions of an access code 16 as mandatory provisions. 17 (3) An access code may contain non-binding guidelines relating to negotiating 18 and agreeing access arrangements. 19 69DB Application of mandatory provisions of access codes 20 (1) An access arrangement is taken to include provisions in the same terms as the 21 mandatory provisions of the access code. 22 (2) A provision of an access arrangement has no effect to the extent that it contains 23 obligations on the holder of the prospecting title that are less stringent than 24 those in a mandatory provision. 25 Note. See also section 69D (3) which deals with inconsistency between provisions of 26 access arrangements and provisions of regulations. 27 [9] Section 69E Holder of prospecting title to seek access arrangement 28 Insert after section 69E (2): 29 (2A) The holder of the prospecting title must pay the reasonable costs of the 30 landholder of the land concerned in participating in negotiating the access 31 arrangement. 32 (2B) The maximum amount of reasonable costs payable by the holder of the 33 prospecting title is the amount set out by the Minister by order published in the 34 Gazette. 35 (2C) In making the order, the Minister must have regard to the following: 36 (a) time spent participating in negotiating the access arrangement, 37 (b) legal costs of negotiating the access arrangement, 38 (c) costs of engaging experts as part of the negotiation process. 39 (2D) Nothing in this section prevents a holder of a prospecting title, at the holder's 40 discretion, paying other amounts to a landholder. 41 Page 16 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (2E) An order relating to costs may: 1 (a) apply generally or be limited in its application by reference to specified 2 exceptions or factors, or 3 (b) apply differently according to different factors of a specified kind, or 4 (c) authorise any matter or thing to be from time to time determined, 5 applied or regulated by any specified person or body, 6 or may do any combination of those things. 7 (2F) The regulations may make provision for or with respect to the payment of 8 costs under this section, including, but not limited to, the following: 9 (a) the timing or frequency of payments, 10 (b) evidence of costs incurred to be provided to the holder of the 11 prospecting title. 12 (2G) The holder of a prospecting title and the landholder of the land concerned must 13 negotiate on an access arrangement in good faith. 14 [10] Section 69G Appointment of arbitrator in default of agreement 15 Omit section 69G (2) and (3). Insert instead: 16 (2) At the same time as, or after, an application is made under this section, but 17 before an arbitrator is appointed, the holder of the prospecting title concerned 18 must pay the application fee prescribed by the regulations for the purposes of 19 this section. 20 [11] Sections 69H, 69HA and 69HB 21 Omit section 69H. Insert instead: 22 69H Arbitration process--mediation before arbitration hearing 23 (1) As soon as practicable after having been appointed, an arbitrator: 24 (a) must fix a time and place for conducting a mediation of the question of 25 access to the land concerned, and 26 (b) must cause notice of his or her appointment, and of the time and place 27 fixed for conducting the mediation, to be given to the holder of the 28 prospecting title and to each landholder. 29 (2) The arbitrator may, by a further notice served on the holder of the prospecting 30 title and on each landholder, vary the time or place fixed for conducting the 31 mediation. 32 (3) The arbitrator must, at the time and place fixed under this section, conduct a 33 mediation of the question of access to the land concerned. 34 69HA Mediation 35 (1) An arbitrator conducting a mediation under this Part: 36 (a) must use his or her best endeavours to bring the parties to a settlement 37 acceptable to all of them, and 38 (b) may communicate with the parties collectively or separately, and 39 (c) must treat information obtained by the arbitrator from a party with 40 whom he or she communicates separately as confidential, unless that 41 party otherwise agrees. 42 (2) The parties to a mediation must participate in the mediation in good faith. 43 Page 17 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (3) A mediation terminates if: 1 (a) the parties agree to terminate the mediation, or 2 (b) any party terminates the mediation, by notice in writing, served on the 3 other parties and the arbitrator, or 4 (c) the arbitrator terminates the mediation, or 5 (d) the parties agree on an access arrangement. 6 (4) An arbitrator who has acted as mediator in a mediation that is terminated under 7 subsection (3) (a)-(c): 8 (a) may refuse to conduct the subsequent arbitration, and 9 (b) must not conduct the subsequent arbitration unless, at the time of or 10 after the termination of the mediation, all the parties to the arbitration 11 (including the arbitrator) consent in writing. 12 (5) If: 13 (a) an arbitrator has obtained confidential information from a party during 14 a mediation, and 15 (b) the mediation has been terminated under subsection (3) (a)-(c), and 16 (c) the parties have consented to the arbitrator conducting the subsequent 17 arbitration, 18 the arbitrator must, as soon as reasonably practical after that consent has been 19 given, disclose to all other parties to the arbitration so much of the information 20 as the arbitrator considers material to the arbitration. 21 (6) If the parties consent under subsection (4) (b), no objection may be taken to 22 the conduct of the subsequent arbitration by the arbitrator solely on the ground 23 that he or she has previously conducted a mediation in accordance with this 24 section. 25 (7) If the arbitrator refuses to conduct the subsequent arbitration under 26 subsection (4) (a) or the parties do not consent under subsection (4) (b), the 27 arbitrator's mandate is taken to have been terminated and a substitute 28 arbitrator may be appointed: 29 (a) by the parties, or 30 (b) by the Secretary, but only if the parties have been unable to agree on the 31 appointment of an arbitrator by the end of 7 days after the termination 32 of the mediation. 33 (8) Before a substitute arbitrator is appointed under this section, the holder of the 34 prospecting title concerned must pay the application fee prescribed by the 35 regulations for the purposes of this section. 36 (9) The substitute arbitrator is not required to conduct a mediation under this Part. 37 69HB Arbitration hearing 38 (1) If the mediation is unsuccessful, the arbitrator must, as soon as practicable 39 after its conclusion: 40 (a) fix a time and place for conducting a hearing of the question of access 41 to the land concerned, and 42 (b) cause notice of the time and place fixed for conducting the hearing to be 43 given to the holder of the prospecting title and to each landholder. 44 Page 18 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (2) The arbitrator may, by a further notice served on the holder of the prospecting 1 title and on each landholder, vary the time or place fixed for conducting the 2 hearing. 3 (3) The arbitrator must, at the time and place fixed under this section, conduct a 4 hearing into the question of access to the land concerned. 5 [12] Section 69I 6 Omit the section. Insert instead: 7 69I Right of appearance 8 At any mediation of, or hearing into, the question of access to any land by the 9 holder of a prospecting title, the holder and each landholder: 10 (a) are entitled to appear and be heard, and 11 (b) may be represented by an agent or by an Australian legal practitioner. 12 [13] Section 69J Conciliation 13 Omit the section. 14 [14] Section 69K Conduct of arbitration 15 Omit section 69K (1). Insert instead: 16 (1) The parties to an arbitration must participate in the arbitration in good faith. 17 (1A) An arbitrator may terminate an arbitration at any time at the request of the 18 parties. 19 [15] Sections 69KA, 69KB and 69KC 20 Insert after section 69K: 21 69KA Approved arbitration procedures 22 (1) The Secretary may, by order published in the Gazette, approve arbitration 23 procedures for the conduct of mediations and arbitrations under this Part 24 (approved arbitration procedures). 25 (2) The approved arbitration procedures may include guidance materials for the 26 benefit of the parties and arbitrators. 27 (3) The approved arbitration procedures may also include, but are not limited to, 28 the following: 29 (a) objectives and principles for arbitration, 30 (b) responsibilities of parties and the arbitrator in the arbitration process, 31 (c) stages and timeframes for the arbitration framework, 32 (d) processes for dealing with significant improvements, 33 (e) confidentiality, 34 (f) suspension of mediation or arbitration proceedings in certain 35 circumstances, 36 (g) production of evidence of costs incurred by landholders. 37 (4) Unless the parties and the arbitrator agree otherwise, mediation and arbitration 38 under this Part is to be conducted in accordance with the provisions of the 39 approved arbitration procedures. 40 Page 19 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (5) In the event of an inconsistency between a provision of the approved 1 arbitration procedures and a provision of this Act or of the regulations, the 2 provision of this Act or of the regulations prevails. 3 (6) If a matter is not provided for in this Act, the regulations or the approved 4 arbitration procedures, the procedure at a mediation or a hearing is to be as 5 determined by the arbitrator. 6 (7) Approved arbitration procedures take effect on the day on which the 7 procedures are published in the Gazette or, if a later day or days are specified 8 for that purpose, on the later day or days so specified. 9 (8) Sections 40 and 41 of the Interpretation Act 1987 apply to the approved 10 arbitration procedures under this section in the same way as they apply to 11 statutory rules within the meaning of that Act. 12 69KB Site inspection by arbitrator 13 An arbitrator conducting a mediation or a hearing may enter the land 14 concerned and inspect it at a reasonable time after giving reasonable notice to 15 the landholder. 16 69KC Costs of landholder participation in mediation and arbitration 17 (1) The holder of the prospecting title must pay the reasonable costs of the 18 landholder of the land concerned in participating in the mediation and 19 arbitration. 20 (2) The maximum amount of reasonable costs is the amount set out by the 21 Minister by order published in the Gazette. 22 (3) In making the order, the Minister must have regard to the following: 23 (a) time spent participating in the mediation and arbitration, 24 (b) legal costs in participating in the mediation and arbitration, 25 (c) costs of engaging experts as part of the mediation and arbitration 26 process. 27 (4) Nothing in this section prevents a holder of a prospecting title, at the holder's 28 discretion, paying other amounts to a landholder. 29 (5) An order relating to costs may: 30 (a) apply generally or be limited in its application by reference to specified 31 exceptions or factors, or 32 (b) apply differently according to different factors of a specified kind, or 33 (c) authorise any matter or thing to be from time to time determined, 34 applied or regulated by any specified person or body, 35 or may do any combination of those things. 36 [16] Section 69NA 37 Insert after section 69N: 38 69NA Determination as to costs 39 (1) This section applies to an arbitrator in the following circumstances: 40 (a) as soon as practicable after an interim determination is taken to be a 41 final determination, 42 (b) on making a final determination under this Part, 43 (c) before terminating an arbitration at the request of the parties. 44 Page 20 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (2) The arbitrator must determine the following: 1 (a) if the parties have disputed a payment to cover the landholder's costs in 2 negotiating the access arrangement, the amount of that payment (in 3 accordance with section 69E), and 4 (b) the reasonable costs of the landholder in participating in the mediation 5 and arbitration (in accordance with section 69KC). 6 (3) When determining a payment to cover the reasonable costs of the landholder 7 in participating in the mediation and arbitration, the arbitrator must: 8 (a) consider whether or not the landholder has acted unreasonably in the 9 negotiation, mediation or arbitration, and 10 (b) deduct an amount that in the opinion of the arbitrator represents the 11 amount by which the unreasonable conduct increased the costs of the 12 negotiation, mediation or arbitration. 13 [17] Section 69O Costs of mediation and arbitration hearing 14 Omit section 69O (1). 15 [18] Section 69Q Liability 16 Insert "a mediation or" after "purposes of". 17 [19] Section 69R Review of determination 18 Omit "(other than a determination referred to in section 69J (2))" from section 69R (1). 19 [20] Section 69R (8) and (9) 20 Insert after section 69R (7): 21 (8) The holder of the prospecting title must pay the reasonable costs of the 22 landholder of the land concerned in a review of a determination under this 23 section. 24 (9) The Land and Environment Court, in determining those reasonable costs, must 25 consider whether or not the landholder has acted unreasonably in the 26 negotiation, mediation, arbitration or review proceedings. 27 [21] Section 69SA 28 Insert after section 69S: 29 69SA Register of arbitrated access arrangements 30 (1) As soon as is practicable after an access arrangement is determined by an 31 arbitrator, the holder of the prospecting title must provide the Secretary with a 32 copy of the final access arrangement. 33 Maximum penalty: 100 penalty units (in the case of a corporation) or 34 50 penalty units (in the case of an individual). 35 (2) The Secretary is to keep and maintain a register of all final access 36 arrangements provided to him or her. 37 (3) The Secretary is not required to include in the register: 38 (a) personal information (within the meaning of the Privacy and Personal 39 Information Protection Act 1998) about an individual, or 40 (b) any other information prescribed by the regulations, or 41 Page 21 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (c) any other information that the Secretary determines should be kept 1 confidential. 2 (4) The register is to be made available for public inspection on the Department's 3 website. 4 [22] Section 69T 5 Omit the section. Insert instead: 6 69T Variation of access arrangements 7 (1) An access arrangement may be varied: 8 (a) in accordance with the terms of the arrangement relating to its variation, 9 or 10 (b) by the agreement of the parties to the arrangement, or 11 (c) by an arbitrator under this section (whether or not the access 12 arrangement was determined by an arbitrator), or 13 (d) on application by any of the parties to the arrangement, by order of the 14 Land and Environment Court if the arrangement was determined by a 15 court or an arbitrator. 16 (2) A party to an access arrangement may, by written notice served on all the other 17 parties to the arrangement, request the parties to agree to the appointment of 18 an arbitrator. 19 (3) The parties to an access arrangement may agree to the appointment of any 20 person as an arbitrator. 21 (4) Sections 69G-69N and 69O-69S apply, with all necessary changes, in relation 22 to an arbitration under this section, subject to the following modifications: 23 (a) in the application of section 69G (1), the reference to a notice served in 24 accordance with section 69F is taken to be a reference to a notice served 25 in accordance with subsection (2), 26 (b) section 69G (2) does not apply and instead the following applies: 27 (2) Before an arbitrator is appointed under this section, the 28 party requesting the appointment of an arbitrator must pay 29 the application fee prescribed by the regulations for the 30 purposes of this section. 31 (c) section 69KC does not apply and instead the following provision 32 applies: 33 69KC Costs 34 Each party to the mediation and hearing conducted by the 35 arbitrator is to bear his or her own costs in relation to the 36 hearing. 37 (d) any other modification prescribed by the regulations. 38 (5) In this section, vary includes terminate. 39 Page 22 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 [23] Sections 69V and 69W 1 Insert after section 69U: 2 69V Court may determine access arrangement if already considering significant 3 improvements etc 4 (1) If: 5 (a) a party applied to the Land and Environment Court for a determination 6 of a matter under section 72 (4), and 7 (b) no access arrangement relates to the land concerned, 8 either party to those Court proceedings may apply to the Court to have the 9 Court determine an access arrangement under this Part in relation to the land. 10 (2) An application under this section must not be lodged within 28 days after the 11 holder of the prospecting title has served notice under section 69E of an 12 intention to obtain an access arrangement in respect of the land concerned. 13 (3) The Land and Environment Court may accept or reject the application. 14 (4) Subject to any order of the Land and Environment Court, an application under 15 this section operates to stay any other access arrangement mediation or 16 arbitration in relation to the land until the decision of the Land and 17 Environment Court on the application. 18 (5) If the Land and Environment Court decides to accept the application: 19 (a) the Land and Environment Court is, subject to the regulations, to 20 determine an access arrangement under this Part in relation to the land, 21 and 22 (b) any other access arrangement mediation or arbitration in relation to the 23 land is terminated. 24 69W Removal of Arbitration Panel arbitrator 25 (1) The Secretary may, subject to the regulations, remove an arbitrator who has 26 been appointed under section 69G or 69HA (7) (b) if, after an investigation by 27 the Secretary following a complaint, the Secretary is satisfied: 28 (a) that: 29 (i) circumstances exist that give rise to justifiable doubts as to the 30 arbitrator's impartiality, or 31 (ii) the arbitrator is incapable of conducting the proceedings or there 32 are justifiable doubts as to the arbitrator's capacity to do so, or 33 (iii) the arbitrator has refused or failed properly to conduct the 34 proceedings, and 35 (b) that substantial injustice has been caused or will be caused to one or 36 more of the parties. 37 (2) If an arbitrator has been removed under subsection (1), the arbitrator's 38 mandate is taken to have been terminated and a substitute arbitrator is to be 39 appointed: 40 (a) by the parties, or 41 (b) by the Secretary, but only if the parties have been unable to agree on the 42 appointment of an arbitrator by the end of 7 days after the removal. 43 (3) The regulations may make provision for or with respect to the removal of 44 arbitrators under this section, including, but not limited to: 45 (a) the making of complaints to the Secretary, and 46 Page 23 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (b) investigations by the Secretary of complaints. 1 [24] Part 4B 2 Insert after Part 4A: 3 Part 4B Access arrangements for production leases 4 Note. Section 41 (3) provides that a holder of a production lease may conduct activities on the land 5 comprised in the lease only in accordance with an access arrangement applying to that land. 6 69X Part 4A extends to access arrangements for production leases 7 (1) Part 4A (other than sections 69A-69C and 69D (4) and (5)) extends to access 8 arrangements for the purpose of conducting petroleum mining operations 9 under a production lease as if references in that Part to: 10 (a) a prospecting title were references to a production lease, and 11 (b) prospecting operations were references to petroleum mining operations. 12 (2) The extension of Part 4A by this section is subject to any necessary changes 13 and any other modification prescribed by the regulations. 14 [25] Section 72 Restrictions on rights of holders of titles over other land 15 Omit section 72 (1) (c). Insert instead: 16 (c) on which is situated any significant improvement, other than an 17 improvement constructed or used for mining or prospecting operations, 18 [26] Section 72 (3) 19 Omit the subsection. 20 [27] Section 72 (5)-(7) 21 Insert after section 72 (4): 22 (5) The holder of the petroleum title is to pay the costs of the owner of the 23 dwelling-house, garden, vineyard or orchard or improvement (or occupant of 24 the dwelling-house) in those proceedings in the Land and Environment Court. 25 (6) In this section, significant improvement on land, in relation to a petroleum 26 title or an access arrangement, means a work or structure that: 27 (a) is a substantial and valuable improvement to the land, and 28 (b) is reasonably necessary for the operation of the landholder's lawful 29 business or use of the land, and 30 (c) is fit for its purpose (immediately or with minimal repair), and 31 (d) cannot reasonably co-exist with the exercise of rights under the 32 petroleum title or the access arrangement without hindrance to the full 33 and unencumbered operation or functionality of the work or structure, 34 and 35 (e) cannot reasonably be relocated or substituted without material 36 detriment to the landholder, 37 and includes any work or structure prescribed by the regulations for the 38 purposes of this definition, but does not include any work or structure 39 excluded from this definition by the regulations. 40 (7) This section does not apply to the holder of a petroleum title who carries out a 41 seismic survey on a road within the meaning of the Road Transport Act 2013, 42 but only if the holder has given written notice of at least 21 days (or such other 43 Page 24 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 period as is prescribed by the regulations) of the carrying out of the seismic 1 survey to the owner of the dwelling-house, garden, vineyard, orchard or 2 improvement concerned (and, in the case of a dwelling-house, the occupant). 3 [28] Section 107A 4 Insert before section 107: 5 107A Definition 6 In this Part: 7 compensable loss means loss caused, or likely to be caused, by: 8 (a) damage to the surface of land, to crops, trees, grasses or other vegetation 9 (including fruit and vegetables) or to buildings, structures or works, 10 being damage which has been caused by or which may arise from 11 prospecting or mining operations, or 12 (b) deprivation of the possession or of the use of the surface of land or any 13 part of the surface, or 14 (c) severance of land from other land of the landholder, or 15 (d) surface rights of way and easements, or 16 (e) destruction or loss of, or injury to, disturbance of or interference with, 17 stock, or 18 (f) damage consequential on any matter referred to in paragraphs (a)-(e). 19 [29] Section 107 Compensation 20 Omit section 107 (1). Insert instead: 21 (1) On the granting of a petroleum title, each person having any estate or interest 22 in any land becomes entitled to compensation for any compensable loss 23 suffered, or likely to be suffered, by the person as a result of the exercise of the 24 rights conferred by the title or by an access arrangement in respect of the title. 25 Note. A petroleum title is an exploration licence, assessment lease, production lease 26 or special prospecting authority in force under this Act. 27 [30] Section 108 Parties to agree as to compensation 28 Insert after section 108 (2): 29 (3) Subsection (2) does not apply to compensation that is to be determined under 30 an access arrangement that is required to be agreed or determined in 31 accordance with Part 4A or 4B of this Act. 32 [31] Section 109 Measure of compensation 33 Omit section 109 (1). 34 [32] Section 109 (2) 35 Omit "Without affecting the generality of subsection (1), where:". Insert instead "Where:" 36 [33] Section 109 (2) (b) 37 Omit "by the Land and Environment Court". Insert instead "by any court, person or body". 38 [34] Section 109 (3) 39 Omit "the Land and Environment Court". Insert instead "a court, person or body". 40 Page 25 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 [35] Section 109 (4) 1 Insert after section 109 (3): 2 (4) In making an assessment of compensation regard is to be had to the matters (if 3 any) prescribed by the regulations. 4 [36] Section 111 Additional assessment 5 Omit "further loss has been caused to the land to which the assessment relates, or to other 6 land, being loss arising from any one or more of the causes mentioned in section 109 (1)" 7 from section 111 (b). 8 Insert instead "further compensable loss has been caused to the land to which the 9 assessment relates or to other land". 10 [37] Section 141 General immunity of landholders 11 Insert after section 141 (1) (a): 12 (a1) by or under any other Act in connection with any activity under a 13 petroleum title under this Act, or 14 [38] Section 141 (1A) 15 Insert after section 141 (1): 16 (1A) For the avoidance of doubt, subsection (1) does not apply to the extent that the 17 action, liability, claim or demand arose from anything done by the landholder: 18 (a) with the intention to cause harm, or 19 (b) recklessly. 20 [39] Schedule 1 Savings and transitional provisions 21 Insert after clause 2 (3): 22 (4) Any provision of the regulations made under this clause has effect despite 23 anything to the contrary in this Schedule. The regulations may make separate 24 savings and transitional provisions or amend this Schedule to consolidate the 25 savings and transitional provisions. 26 [40] Schedule 1 27 Insert at the end of the Schedule with appropriate Part and clause numbering: 28 Part Provisions consequent on enactment of Mining and 29 Petroleum Legislation Amendment (Land Access 30 Arbitration) Act 2015 31 Definition 32 In this Part, 2015 amending Act means the Mining and Petroleum Legislation 33 Amendment (Land Access Arbitration) Act 2015. 34 Application of amendments relating to general arbitration procedures to 35 existing access arrangements and proposed access arrangements 36 (1) This clause applies to a proposed access arrangement for which notice had 37 been given under section 69E before the commencement of this clause, but 38 which was not agreed or determined before that commencement. 39 Page 26 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (2) Sections 69D (1) (f) and (2), 69G (2), 69H, 69I, 69J, 69K (1) and 69R (1) as 1 in force immediately before their amendment, substitution or repeal by the 2 2015 amending Act continue to apply to access arrangements and proposed 3 access arrangements to which this clause applies. 4 (3) Sections 69HA, 69HB, 69KB and 69SA do not apply to access arrangements 5 and proposed access arrangements to which this clause applies. 6 Application of amendments relating to costs to existing access arrangements 7 and proposed access arrangements 8 (1) This clause applies to a proposed access arrangement for which notice had 9 been given under section 69E before the commencement of this clause, but 10 which has not been agreed or determined before that commencement. 11 (2) Sections 69D (2A) and 69O (1) as in force immediately before their repeal by 12 the 2015 amending Act continue to apply to access arrangements and proposed 13 access arrangements to which this clause applies. 14 (3) Sections 69E (2A)-(2D), 69KC, 69NA and 69V do not apply to access 15 arrangements and proposed access arrangements to which this clause applies. 16 Application of amendments relating to costs in Land and Environment Court 17 Section 69R (8) and (9), as inserted by the 2015 amending Act, do not apply 18 to proceedings in the Land and Environment Court commenced, but not finally 19 determined, before the commencement of this clause. 20 Application of amendments relating to production leases 21 Section 41 (3) and Part 4B, as inserted by the 2015 amending Act, do not apply 22 in relation to a production lease granted before the commencement of this 23 clause. 24 Application of amendments relating to determination of compensation 25 The amendments to the Act made by Schedule 2 [27]-[34] to the 26 2015 amending Act do not apply to the following: 27 (a) an arbitration commenced, but not completed, before the 28 commencement of this clause, 29 (b) proceedings in the Land and Environment Court commenced, but not 30 determined, before the commencement of this clause. 31 Application of amendment relating to the definition of "significant 32 improvement" 33 The insertion of the definition of significant improvement into section 72, and 34 the other amendments to that section, by the 2015 amending Act do not apply 35 in relation to the following: 36 (a) any proceedings in the Land and Environment Court under that section, 37 or 38 (b) any proceedings in that Court in relation to a dispute concerning an 39 access arrangement for which notice had been given under section 69F 40 before the commencement of this clause, 41 that were commenced, but not finally determined, before the commencement 42 of this clause. 43 Page 27 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 [41] Schedule 1 Insert at the end of the Act with an appropriate Schedule number: 2 Schedule Cancellation of titles relating to national 3 parks 4 1 Cancellation of certain exploration licences 5 An exploration licence, or part of an exploration licence, that is comprised of 6 land within a national park (within the meaning of the National Parks and 7 Wildlife Act 1974) as at the commencement of this Schedule is cancelled by 8 this Schedule, either wholly or in part, as the case requires. 9 2 Compensation not payable 10 (1) Compensation is not payable by or on behalf of the State: 11 (a) because of the enactment or operation of this Schedule or any Act that 12 amends this Schedule, or 13 (b) because of any direct or indirect consequence of any such enactment or 14 operation (including any conduct under the authority of any such 15 enactment), or 16 (c) because of any conduct relating to any such enactment or operation. 17 (2) This clause extends to conduct and any other matter occurring before the 18 commencement of this clause. 19 (3) In this clause: 20 compensation includes damages or any other form of compensation. 21 conduct includes any statement, or any act or omission: 22 (a) whether unconscionable, negligent, false, misleading, deceptive or 23 otherwise, and 24 (b) whether constituting an offence, tort, breach of contract, breach of 25 statute or otherwise. 26 statement includes a representation of any kind, whether made orally or in 27 writing. 28 the State means the Crown within the meaning of the Crown Proceedings Act 29 1988 or an officer, employee or agent of the Crown. 30 3 State not liable for certain conduct 31 (1) The State is not liable, and is taken never to have been liable, whether 32 vicariously or otherwise, for any conduct (relevant conduct) before an 33 exploration licence's cancellation under this Schedule in relation to an 34 exploration licence or prospecting on land (whether occurring before or after 35 the grant of the licence). 36 (2) In addition, the State is not liable, and is taken never to have been liable, 37 whether under any contract, policy or other arrangement for self-insurance or 38 otherwise, to indemnify any person against any personal liability of the person 39 for relevant conduct. 40 (3) This clause extends to all types of civil liability, whether at law or in equity, 41 and whether arising in tort or contract, or under an enactment or otherwise. 42 Page 28 Mining and Petroleum Legislation Amendment (Land Access Arbitration) Bill 2015 [NSW] Schedule 2 Amendment of Petroleum (Onshore) Act 1991 No 84 (4) An employee (or former employee) of the State acting honestly and in good 1 faith in the performance or purported performance of his or her functions as an 2 employee of the State has the same protections and immunities as the State 3 under this clause. 4 (5) This clause applies despite the Law Reform (Vicarious Liability) Act 1983 and 5 the Civil Liability Act 2002. 6 (6) In this clause: 7 employee of the State means a person employed under the Government Sector 8 Employment Act 2013. 9 the State means the Crown in right of New South Wales and includes a 10 statutory body representing the Crown. 11 4 Continuing obligation to provide reports 12 The obligation of the holder of an exploration licence to provide a report under 13 this Act continues despite the cancellation of the licence under this Schedule. 14 5 Access arrangements 15 (1) The cancellation of an exploration licence by this Schedule does not affect any 16 liabilities of a holder or former holder of the licence under an access 17 arrangement. 18 (2) The cancellation of an exploration licence by this Schedule operates, for the 19 purposes of any access arrangement relating to the licence: 20 (a) as an occasion of the holder of the licence ceasing to hold an authority 21 over the exploration area, and 22 (b) as a cancellation of the licence for the purpose of any provision of the 23 access arrangement that deals with the cancellation of an authority. 24 (3) The regulations may make provision for or with respect to the termination of 25 any access arrangements relating to an exploration licence cancelled under this 26 Schedule. 27 Page 29
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