Coveney & Cootabynia Pastoral Company, Re [1994] QMW 2

DETERMINATION OF WARDEN PURSUANT TO SECTION 7 (38) OF THE MINERAL RESOURCES ACT 1989. IN THE MATTER OF: DETERMINATION OF COMPENSATION PURSUANT TO SECTION 7(38) OF THE MINERAL RESOURCES ACT 1989 IN RESPECT OF MINING LEASE 95121 AND 95122 IN THE WINTON MINING DISTRICT. BEFORE: F.W.WINDRIDGE WARDEN. FOR APPLICANT MINER: NO APPEARANCE FOR ROSS GORDON COVENEY. FOR LAND OWNER: NO APPEARANCE FOR COOTABYNIA PASTORAL COMPANY. CATCHWORDS: MINING – COMPENSATION – COOTABYNIA STATION – ACCESS ROUTE - SEDIMENT Mineral Resources Act 1989 s. 281 DETERMINATION: These matters came on for hearing in the Wardens Court on 5 August 1994 at Winton. The applicant miner failed to appear and the respondent land owner failed to appear. The applicant made brief written submissions to which I will refer later. The landowner did not make any written submission. The determinations in respect of both of the above leases is contained in this determination as in both cases, the parties are the same, the mineral sought is the same, and the proposed leases are on the same property and in close proximity to each other. Therefore current land use and any future land use is the same. It is therefore convenient for both determinations to be dealt with together and no party will suffer any disadvantage by the adoption of this course. In respect of MLA 95121, the applicant miner has applied for an area of 8.23 hectares for the purpose of mining for opal, the term to be ten years. For the purpose of this determination, the area shall be rounded off to 8 hectares. In respect of MLA 95122, the applicant miner has applied for an area of 5.94 hectares for the purpose of mining for opal, the term to be ten years. For the purpose of this determination, the area shall be rounded off to 6 hectares. Both applications are situated on Lot 2 on GHFL 6061 being known as Cootabynia Station. Each application was before the Wardens Court on 16th May 1994 and was recommended for grant. Such grant cannot proceed until compensation is settled either by the parties by agreement in writing, or by a determination of the Court if such an agreement is not filed within three months of the date of recommendation. Neither party having filed such an agreement, the [1994] QMW 2 -- 1 of 4 -- Court is empowered to make a determination under Section 7.38 of the Act. Matters which must be considered are set forth in subsections (3) and (4) of section 7.38. As neither party appeared and no evidence has been adduced, save the brief submission of the applicant miner, the Court will rely on the information on the Registrars file including the recommendation dated 16 May 1994, and its own knowledge of the area and type of mining in order to reach a determination. I recall from the material supplied with the application that there are no improvements on the application areas. The area in respect of 95121 has been cleared of gidyea but not stick racked. The area in respect of 95122 appears to be on the side of a small cap rock hill and appears to be of little pastoral value. It appears therefore that the activities on these leases will have little or no effect on the grazing operations conducted by the landowner. I assume from his non appearance that the landowner expects little or no loss of income in relation to this mining operation. The applicant miner indicates that he will agree to the payment of $5.00 per hectare per annum in respect of 95121. He states that 95121 is on a slope, is a small cap rock hill of no pastoral value. In respect of 95122, the miner submits the land is of no grazing value as it is a cap rock hill with no vegetation and no drought reserve fodder. The photographs on the Registrars file tend to bear out those submissions. The landowner and the miner having failed to adduce any evidence under the provisions of subsection (3) and (4) of Section 7.38, I determine compensation as follows: 7.38(3)(a) (i). deprivation of possession of the surface of the land of the owner. There is no evidence which will allow any quantum to be placed on the land lost to the owner for the term of the lease. 7.38(3)(a) (ii). diminution of the value of the land of the owner or of any improvements thereon. There is no evidence that the value of the land will diminish, or that improvements on the land or nearby will diminish in value. 7.38(3)(a) (iii) diminution of the use made or which may be made of the land or the owner or any improvements thereon. There is no evidence of the use of the land or of any improvements that will be affected by the mining operation. The only apparent use of the land is low intensity grazing. 7.38(3)(a) (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, and given the relatively small areas contained in the lease areas, this is highly unlikely. -- 2 of 4 -- 7.38(3)(a) (v) any surface rights of access. There is no evidence of loss through surface rights of access. 7.38(3)(a) (vi) all loss or expense that arises. There is no evidence of any other loss or expense arising from the loss of the land for the term of the lease. There is no valuation evidence to consider, and therefore the Court does not have that assistance in arriving at a determination. Due to the small area involved, the cost of a valuation would far outweigh any award for compensation. In summary there was no evidence called to support any claim under any other head of compensation contained in Section 7.38 of the Mineral Resources Act, nor was any matter raised which would necessitate consideration under paragraphs (a), (b), or (d) of Section 7.38(4) of the act. I take the view that the owners anticipate little or no loss from any occurrence of the kind mentioned in Section 7.38. In my opinion the value which should be placed on compensation under the heads in paragraphs (i) to (vi) inclusive of section 7.38(3), after giving consideration as the evidence permits to all the matters contained in paragraphs (a) to (d) of Section 7.38(4), including the compulsory nature of the taking for a term of ten years (or less if surrendered, cancelled or forfeited earlier) should be a nominal amount. In reaching this conclusion, and in making the determination in relation to terms, conditions and times when payments aggregating the total compensation shall be payable, I take into account: (a) that the only suitable and likely use of the land apart from mining is low intensity grazing under favourable conditions. (b) that the proposed operation will affect a small area of country with little or no pasture of any real value. (c) that deprivation of possession of the surface of the land applied for is not likely, in view of the current use and likely use to which the owners put the land, to result in any significant loss of profit, or significant diminution of the value of the land of the owner or any improvements thereon, and (d) that there is unlikely to be any severance of the owners land or any other disturbance to the owners enjoyment of activities on the balance of the land or in relation to the improvements on such land, caused by the lessees proposed mining operation and/or access to the land for the purpose of that operation. I determine, after taking into account an 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 to the landowner COOTABYNIA PASTORAL COMPANY by the lease holder ROSS GORDON COVENEY to satisfy all heads of compensation set forth in paragraphs (i) to (vi) inclusive of section 7.38(3) of the Mineral Resources Act: -- 3 of 4 -- IN RESPECT OF M.L.A 95121 - shall be the sum of $5.00 per annum per hectare for the term of the lease, i. e. $400.00. IN RESPECT OF M.L.A. 95122 - shall be the sum of $5.00 per hectare per annum for the term of the lease, i.e. $300.00. There being no submission from either party in relation to the times, terms or manner of payment, I determine that due to the small area involved and the term of the lease, payment shall be by way of a sump sum payment of $400.00 in respect of MLA 95121, and $300 in respect of MLA 95122. It is further directed that the applicant miner (COVENEY) provide proof of payment of the amount ordered within 30 days of the date of this order to the Registrar at WINTON and in the absence of that proof, the Registrar advise the Minister that the application should be rejected for non payment of compensation. It is indicated from my perusal of the files that the landowner has some concerns about access routes. The landowner did not file any objection to the designated access routes. However, he is quite at liberty to negotiate with the miner and by mutual consent arrange for a more suitable route to be used. It is then up to the miner to apply for that new route to be recorded. In respect of any concerns about silting up of a dam or water catchment pond, the miner is bound by his EMOS to limit or remove the chance of any sediment run off. For this purpose he may find it necessary to construct a drain to send any dirty water containing sediment away from the dam or through some settling ponds. This is a matter on which the local Field Officer or Environmental Officer could assist. The miner can be held financially responsible if the landowner can prove siltation occurred because of mining practices. There is no application for costs, and no costs are awarded. Dated at Brisbane this 16th day of August 1994. F.W.WINDRIDGE MINING WARDEN. -- 4 of 4 --