Queensland Numbered Acts

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MINERAL AND ENERGY RESOURCES (COMMON PROVISIONS) ACT 2014 No. 47 - SECT 167

167 Liability of ML (coal) holder to compensate PL holder

(1) This section applies if—

(a) an ML (coal) holder gives an acceleration notice to a PL holder and, because of the acceleration notice, the PL holder—
(i) suffers, or will suffer, lost production; or
(ii) is, or will be, required to replace PL minor gas infrastructure for the PL; or
(b) an ML (coal) holder carries out, or proposes to carry out, authorised activities in an IMA or RMA for an overlapping area and, because of the authorised activities—
(i) PL connecting infrastructure for a PL is or will be physically severed and the PL holder is or will be required to replace the PL connecting infrastructure; or
(ii) the PL holder is or will be required to replace PL major gas infrastructure for the PL.

(2) The ML (coal) holder is liable to compensate the PL holder for—

(a) if subsection (1)(a)(i) applies—the lost production; or
(b) if subsection (1)(a)(ii) applies—the cost of replacement of the PL minor gas infrastructure; or
(c) if subsection (1)(b)(i) applies—the cost of replacement of the PL connecting infrastructure; or
(d) if subsection (1)(b)(ii) applies—the cost of replacement of the PL major gas infrastructure; or
(e) if subsection (1)(a) applies, but the mining commencement date for an IMA or RMA is delayed to later than the agreed mining commencement date—additional costs incurred by the PL holder because of the delay, except to the extent the liability to compensate is reduced under subsection (4).

(3) The ML (coal) holder's liability under subsection (2) to compensate the PL holder is the ML (coal) holder's compensation liability to the PL holder.

(4) The ML (coal) holder's compensation liability for the PL holder's additional costs as mentioned in subsection (2)(e) is reduced to the extent the delay is caused by any event beyond the control of the ML (coal) holder, but only if the ML (coal) holder—

(a) as soon as practicable gives written notice to the PL holder of—
(i) the event; and
(ii) the details of any cause of the event; and
(b) takes all reasonable steps to minimise the effect of the event on the agreed mining commencement date.


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