(1) If a petroleum resource authority holder considers an ML (coal) holder has a compensation liability to the petroleum resource authority holder, the petroleum resource authority holder must—
(a) advise the ML (coal) holder of the liability as soon as reasonably practicable; and
(b) include with the advice a written proposal for calculating the amount of compensation payable.
(2) The ML (coal) holder may either—
(a) accept the proposal; or
(b) respond with a written counter proposal.