Bonney & Ors, Re [1996] QMW 3

DETERMINATION OF WARDEN PURSUANT TO SECTION 281 OF THE MINERAL RESOURCES ACT 1989. IN THE MATTER OF: DETERMINATION OF COMPENSATION IN RESPECT OF MINING LEASE 20235 MAREEBA DISTRICT. BEFORE: F.W.WINDRIDGE. MINING WARDEN. APPLICANT/MINER: L.D.BONNEY, R.K.BONNEY, and I.M.BONNEY. RESPONDENT/OWNER: A. & G.T.WILSON, A.C. & K.L.PEDERSEN, E.V. AHLERS & N.P, C.S, B.S, & R.V.HUGHES. CATCHWORDS: COMPENSATION – NO EVIDENCE – NO SUBMISSIONS – LOW VALUE OF LAND – NO DISTURBANCE – NOMINAL COMPENSATION Mineral Resources Act 1989 s. 281 DETERMINATION: This matter was set for hearing in the Wardens Court at Mareeba on 30 April 1996. Neither party appeared or made submissions. As I consider the notice of the hearing was very short, the determination has been delayed to give any party the opportunity of making submissions. To date no submissions have been received. The applicant miners have applied for a mining lease for a term of 5 years over 63.188 hectares for the purpose of mining for gold, silver, antimony, molybdenum and platinum. The proposed lease is located 88 kilometres north west of Mt.Carbine in the Limestone Creek area near Harbord. The land in the lease application area is more accurately described as Lot 2 on Plan CF10, Portion of Groganville, being part of Palmerville Holding, Lot 1 on CF14, Parish of Harbord, County of Chelmsford, being part of S.L.51183, and Lot 4567 on PH1696, Parish of Groganville, County of Chelmsford, being part of Groganville Holding. For the purpose of this determination, the area of the lease is rounded off to 63 hectares, and as the lease covers three separate properties, the area is dissected as follows: S.L. 51183 - 47 hectares - PEDERSEN. mining only. Palmerville H. - 7 hectares - WILSON. mining and access. Groganville H. - 9 hectares - AHLERS & HUGHES. mining and access. Annexure A depicts the various parts of the lease showing their relationship to each other. [1996] QMW 3 -- 1 of 3 -- 2 The applicants have been conducting mining operations in the area for a number of years, and the proposal for this lease is to conduct a small alluvial program. Some material has already been stockpiled from another operation and is to be treated in a wet plant. The miner and the owner not having filed an agreement as to compensation, the matter of compensation has been referred to the Court for determination. The landowner and the miner having failed to adduce any evidence under the provisions of subsections (3) and (4) of section 281, I determine compensation as follows: (i) deprivation of possession of the surface of the land. ]There is no evidence which will allow any quantum to be placed on the land lost to the owner. The term applied for is five years, and this term has been recommended by the Warden. Therefore it is not an acquisition for any length of time. The applicant only has the resources to work the alluvial material, and this material is usually of little grazing value. (ii) diminution of the value of the land of the owner or any improvements thereon. There is no evidence before the Court as to the value of the land or any improvements, except a computer print out taken from Valuer General records. This indicates that the property held by PEDERSEN has an average unimproved value of $2.60 per hectare, and the property held by Ahlers and Hughes has an average unimproved value of about $1.40 per hectare. There is no evidence of any improvements that will be affected by the operation. (iii) diminution of the use made or which may be made of the land or the owner or improvements thereon. While there is no evidence of loss of use, it must be assumed that some loss will occur because of the operation. In respect of Groganville Holding and Palmerville Holding, this loss will be small due to the small area involved. (iv) severance of any part of the land from other parts thereof or from other land of the owner. There is no evidence that any part of the land will be severed from any other part of the land of the owner. (v) any surface rights of access. There is no evidence of loss through surface rights of access, although there must be some loss because of land used for access purposes on Palmerville Holding and Groganville Holding only. (vi) all loss or expense that arises. There is no evidence of any other loss or expense that might arise from the grant of the lease. -- 2 of 3 -- 3 There is no valuation evidence to consider and therefore the Court does not have the benefit of that evidence to assist in its determination. In this instance the cost of valuations may well exceed the award of compensation. In summary, there was no evidence called to support any claim under any other head of compensation contained in section 281, nor was any matter raised which would necessitate consideration under section 281, subsection (4), a ,c, d, or e. The land is zoned cattle breeding and fattening, and it appears that the respective landowners conduct grazing operations on the land. I take the view that the owners anticipate little or no loss from any occurrence of the kind mentioned in section 281(3) of the act. In my opinion the value which should be placed on compensation under the various heads of claim allowed under the act, after giving consideration as the evidence permits to all matters referred to in section 281, including the compulsory nature of the taking of the land for a term of five years (or less if surrendered, cancelled or forfeited earlier) should be a nominal amount. I take into account that the only suitable and likely use of the land is low intensity grazing under favourable conditions, that there is little value to be placed on the land in its current state, bearing in mind the alluvial ground that will be worked by the applicant, that the deprivation of the loss of the surface area is likely to have little effect on the overall grazing operation, and there will be no permanent severance. I determine, taking into account the additional amount of the aggregate amount determined under all heads of compensation to reflect the compulsory nature of the action taken under Part 7 of the Mineral Resources Act 1989, the amount of compensation to be paid by the lease holders L.D, R.K, and I.M Bonney to the landowners to satisfy all heads of compensation set forth in section 281 of subsection (3) shall be the sum of $5.00 per hectare per year. There is no submission from either party in relation to the terms, conditions and times when payment should be made. Bearing in mind that this is a relatively short term lease, I direct that compensation be paid to the respective landowners yearly in advance, the first such payment to be made within 60 days of notification of grant of the lease, and yearly thereafter. This determination is based on the area remaining constant during the term of the lease. Should the applicant abandon part of the lease area at any time, the sum of the award will reduce accordingly. Dated at Brisbane this 26th day of June 1996. F.W.WINDRIDGE MINING WARDEN. -- 3 of 3 --