Queensland Numbered Acts

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GEOTHERMAL ENERGY ACT 2010 No. 31 - SECT 474

474 Replacement of part 6K (General compensation provisions)

Part 6K--

omit, insert--

'This division does not apply for--

(a) a public land authority in relation to a notifiable road use; or
(b) an effect that is, or is required to be, addressed in a make good agreement or a decision under part 6CA, division 6.

'(1) The holder of each 1923 Act petroleum tenure is liable to compensate each owner or occupier of private land or public land in the area of, or access land for, the tenure (an eligible claimant) for any compensatable effect the eligible claimant suffers caused by relevant authorised activities.

'(2) A 1923 Act petroleum tenure holder's liability under subsection (1) to an eligible claimant is the holder's compensation liability to the claimant.

'(3) This section is subject to section 79VE.

'(4) In this section--

compensatable effect means all or any of the following--

(a) all or any of the following relating to the eligible claimant's land--
(i) deprivation of possession of its surface;
(ii) diminution of its value;
(iii) diminution of the use made or that may be made of the land or any improvement on it;
(iv) severance of any part of the land from other parts of the land or from other land that the eligible claimant owns;
(v) any cost, damage or loss arising from the carrying out of activities under the 1923 Act petroleum tenure on the land;
(b) accounting, legal or valuation costs the claimant necessarily and reasonably incurs to negotiate or prepare a conduct and compensation agreement, other than the costs of a person facilitating an ADR;
Examples of negotiation--
an ADR or conference
(c) consequential damages the eligible claimant incurs because of a matter mentioned in paragraph (a) or (b).

relevant authorised activities means authorised activities for the 1923 Act petroleum tenure carried out by the holder or a person authorised by the holder.

'(1) An eligible claimant and a 1923 Act petroleum tenure holder may enter into an agreement (a conduct and compensation agreement) about--

(a) how and when the 1923 Act petroleum tenure holder may enter the land for which the eligible claimant is an eligible claimant; and
(b) how authorised activities under the 1923 Act petroleum tenure, to the extent they relate to the eligible claimant, must be carried out; and
(c) the holder's compensation liability to the claimant or any future compensation liability that the holder may have to the claimant.

'(2) However, a conduct and compensation agreement can not be inconsistent with this Act, a condition of the 1923 Act petroleum tenure or a mandatory provision of the land access code and is unenforceable to the extent of the inconsistency.

'(3) A conduct and compensation agreement may relate to all or part of the liability or future liability.

'(1) A conduct and compensation agreement must--

(a) provide for the matters mentioned in section 79R(1); and
(b) be written and signed by or for the 1923 Act petroleum tenure holder and the eligible claimant; and
(c) state whether it is for all or part of the compensation liability; and
(d) if it is for only part of the compensation liability, state--
(i) details of each activity or effect of the activity to which the agreement relates; and
(ii) the period for which the agreement has effect; and
(e) provide for how and when the compensation liability will be met.

'(2) A conduct and compensation agreement may--

(a) extend the holder's compensation liability to the claimant or any future compensation liability that the holder may have to the claimant to any renewal of the 1923 Act petroleum tenure; and
(b) provide for--
(i) monetary or non-monetary compensation; or
Example of non-monetary compensation--
A conduct and compensation agreement may provide for the construction of a road for the claimant.
(ii) a process by which it may be amended or enforced; and
Example of a process for amendment--
A conduct and compensation agreement may provide for compensation under it to be reviewed on the happening of a material change in circumstances for the 1923 Act petroleum tenure including a change in the extent of activities required under a later development plan for a lease.
(c) provide for any compensation that is or may be payable by the holder to the eligible claimant under the Environmental Protection Act.

'(3) This section does not limit the matters that may be provided for in a conduct and compensation agreement.

Note--
Generally, a 1923 Act petroleum tenure holder can not enter private land to carry out an advanced activity unless the holder complies with this subdivision. See sections 78Q and 78R.

'(1) A 1923 Act petroleum tenure holder may give an eligible claimant to whom the holder has a compensation liability a notice (the negotiation notice) that the holder wishes to negotiate a conduct and compensation agreement or a deferral agreement with the eligible claimant.

'(2) The negotiation notice must be accompanied by a copy of the land access code and state all of the following--

(a) if the holder wishes to negotiate a conduct and compensation agreement--
(i) whether the holder wishes to negotiate all or part of the holder's compensation liability to the eligible claimant; and
(ii) if the holder only wishes to negotiate part of the liability--what the part is;
(b) if the holder wishes to negotiate a deferral agreement--that wish and the reasons for it;
(c) the land the holder proposes to enter;
(d) the activities proposed to be carried out on the land;
(e) when and where the activities are proposed to be carried out;
(f) if the holder is a corporation--contact details for the holder and an individual the holder has authorised to negotiate the agreement.

'(3) The 1923 Act petroleum tenure holder must give the chief executive a copy of the negotiation notice immediately after it is given.

Maximum penalty for subsection (3)--10 penalty units.

'(1) On the giving of the negotiation notice, the 1923 Act petroleum tenure holder and the eligible claimant (the parties) must use all reasonable endeavours to negotiate a conduct and compensation agreement or a deferral agreement (a relevant agreement).

'(2) The period of the negotiations--

(a) must be at least for the period provided for under section 79UA (the minimum negotiation period); but
(b) may continue for as long as the parties wish.

'(3) If, during the minimum negotiation period, the parties enter into a relevant agreement, the 1923 Act petroleum tenure holder can not enter the relevant land to carry out advanced activities for the tenure until the period ends.

'(4) Subsection (3) applies despite the terms of the agreement.

'(1) Generally, the minimum negotiation period is 20 business days from the giving of the negotiation notice (the usual period).

'(2) Either party may, within the usual period, ask the other to agree to a longer minimum negotiation period because of stated reasonable or unforeseen circumstances.

'(3) If the other party so agrees, the longer minimum negotiation period is the minimum negotiation period.

'(1) This section applies if the parties enter into a conduct and compensation agreement or a deferral agreement during the minimum negotiation period.

'(2) Either of the parties may, within the minimum negotiation period, terminate the agreement by giving notice to the other party.

'(3) On the giving of a notice under subsection (2), the terminated agreement is taken never to have had any effect.

'(4) To remove any doubt, it is declared that subsection (3) does not change the time when the negotiation notice was given.

'(1) This section applies if, at the end of the minimum negotiation period, the parties have not entered into a conduct and compensation agreement or deferral agreement.

'(2) Either party may by a notice (an election notice)--

(a) to the other party and an authorised officer--ask for an authorised officer to call a conference to negotiate a conduct and compensation agreement; or
(b) to the other party--call upon them to agree to an alternative dispute resolution process (an ADR) to negotiate a conduct and compensation agreement.

'(3) If the notice calls for an ADR, it must--

(a) identify the ADR; and
(b) state that the party giving the notice agrees to bear the costs of the person who will facilitate the ADR.

'(4) An ADR may be a process of any kind including, for example, arbitration, conciliation, mediation or negotiation.

'(5) However, the facilitator must be independent of either party.

'(1) This section applies if an election notice is given.

'(2) If a conference was requested--

(a) the authorised officer must take all reasonable steps to ensure the conference is finished within 20 business days after the notice is given (the usual period); and
(b) part 6R applies for the conference.

'(3) If an ADR was called for, the parties must use reasonable endeavours to finish it within 20 business days after the giving of the notice (also the usual period).

'(4) Either party may, within the usual period, ask the other to agree to a longer period to finish the conference or ADR because of stated reasonable or unforeseen circumstances.

'(5) If the parties agree to the longer period, that period applies instead of the usual period.

'(6) If an ADR was called for, section 103D applies to the ADR as if a reference in the section to a conference were a reference to an ADR.

Editor's note--
section 103D (What happens if a party does not attend)

'(1) This section applies if an election notice is given and--

(a) a party asked an authorised officer to call a conference and the authorised officer does not finish it within the period required under section 79VAB (the required period); or
(b) a party called for an ADR and the person facilitating the ADR does not finish it within the period required under section 79VAB (also the required period).

'(2) This section also applies if an election notice is given and--

(a) only 1 party attended the conference requested or ADR called for; or
(b) both parties attended the conference or ADR and, at the end of the required period, there is no conduct and compensation agreement between the parties.

'(3) An eligible party may apply to the Land Court for it to decide the 1923 Act petroleum tenure holder's--

(a) compensation liability to the claimant; or
(b) future compensation liability to the claimant for an authorised activity for the 1923 Act petroleum tenure proposed to be carried out by or for the holder.

'(4) However, the Land Court may decide the liability or future liability only to the extent it is not subject to a conduct and compensation agreement.

'(5) In hearing the application, the Land Court must as much as practicable ensure the hearing happens together with, or as closely as possible to, the hearing of any relevant environmental compensation application.

'(6) In this section--

eligible party means a party who attended the conference or ADR.

relevant environmental compensation application means an application to the Land Court for compensation that is or may be payable by the 1923 Act petroleum tenure holder to the eligible claimant under the Environmental Protection Act.

'(1) This section applies if--

(a) the compensation liability or future compensation liability of a 1923 Act petroleum tenure holder to an eligible claimant has been agreed to under a conduct and compensation agreement or decided by the Land Court (the original compensation); and
(b) there has been a material change in circumstances (the change) since the agreement or decision.

'(2) The eligible claimant or the holder may apply to the Land Court for it to review the original compensation.

'(3) In carrying out the review, the Land Court may review the original compensation only to the extent it is affected by the change.

'(4) If the Land Court considers the original compensation is not affected by the change, it must not carry out or continue with the review.

'(5) The Land Court may, after carrying out the review, decide to confirm the original compensation or amend it in a way the court considers appropriate.

'(6) If the decision is to amend the compensation, the original compensation as amended under the decision is, for this Act, taken to be the original compensation.

'(1) The Land Court may make any order it considers appropriate to meet or enforce its decision on an application under this part.

'(2) Without limiting subsection (1), the Land Court may order non-monetary compensation as well as monetary compensation.

'(1) This subdivision provides for additional matters for which the Land Court has jurisdiction.

'(2) The jurisdiction is subject to subdivisions 1 to 5.

'(1) This section applies to a 1923 Act petroleum tenure holder and an eligible claimant (the parties) if any of the following apply--

(a) the 1923 Act petroleum tenure holder has carried out a preliminary activity;
(b) the parties can not reach agreement about a conduct and compensation agreement;
(c) there is a conduct and compensation agreement or deferral agreement between the parties.

'(2) The Land Court may do all or any of the following--

(a) assess all or part of the relevant 1923 Act petroleum tenure holder's compensation liability to another party;
(b) decide a matter related to the compensation liability;
(c) declare whether or not a proposed authorised activity for the relevant 1923 Act petroleum tenure would, if carried out, interfere with the carrying out of lawful activities by the eligible claimant;
(d) make any order it considers necessary or desirable for a matter mentioned in paragraph (a), (b) or (c).
Example--
The Land Court declares that a particular proposed authorised activity interferes with the carrying out of lawful activities by the eligible claimant. It may also order that a stated modification of, or reduction in, the activity would remove the interference.

'(1) In deciding a matter mentioned in section 79VDB(2), the Land Court may--

(a) impose any condition it considers appropriate for the exercise of the parties' rights; or
(b) vary any existing condition under an agreement between the parties.

'(2) The variation may be made on any ground the Land Court considers appropriate.

'(3) The imposed or varied condition is taken to be--

(a) if there is an agreement between the parties--a condition of the agreement; or
(b) if there is no agreement between the parties--an agreement between the parties.

'(4) In this section--

agreement means a conduct and compensation agreement.

condition means a condition of or for a conduct and compensation agreement.

'(1) A conduct and compensation agreement or a Land Court decision under this part is for the benefit of, and is taken to have been agreed to or decided for and is binding on, the following--

(a) the relevant eligible claimant;
(b) the 1923 Act petroleum tenure holder;
(c) each of their successors and assigns including successors and assigns for the area of the relevant 1923 Act petroleum tenure.

'(2) Subsection (1) is subject to section 79VC.



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