Monday, 8 October 2012

CSG Part 1 - LNP's Resources and Energy Strategy Policy turning Landholders into Activists?

Posted by: Nick Purcell

Over the past few years I have acted for a number of rural landowners who had experienced, at first hand, the frenetic activity of Queensland’s resource boom. Some of those clients were affected by coal and gas exploration activities, whilst others had gas pipelines constructed across their lands. With that background in mind, I read the LNP’s “Resources and Energy Strategy” Policy, which was released prior to the last election, with some interest. You can find a copy of it here. The Policy had three key principles:
  1. Fairer compensation to landholders, and land access arrangements;
  2. Ensuring greater direct local benefits for the communities impacted; and
  3. Rigorously monitoring industry impacts and enforcing stringent operating conditions.
 
Some of the key commitments underlying those principles included:
  1. Legislating “items and actions” that are subject to compensation for landholders;
  2. Providing clarity that partnerships between landholders and CSG operators should not be limited to compensation arrangements;
  3. Rigorously monitoring impacts to protect the natural environment and resources, including the establishment of a “dedicated” inspection and enforcement unit.
  4. Establishing a Gasfields Land and Water Commission to manage the coexistence of rural landholders, regional communities and the CSG industry;
  5. Establishing a Gasfields Community Leaders Council consisting of local Government, industry and community leaders;
 
Some months have now passed since the election and the implementation of this particular policy seems to be well underway. The now LNP Government has established both a Gasfields Commission and a Gasfields Community Leaders Council. Appointments have been made to key positions for both bodies, including the appointment of seven Commissioners to the GasFields Commission. It is also expected that the powers of the Commission will soon be legislated. In addition to that, the GasFields Commission has also convened a number of community forums in rural Queensland.
Without exception, clients who have sought advice from me about a proposed entry onto their land by a resources exploration company have told me that same thing: they are uncertain about their rights about the entry onto their land or compensation, they are anxious that the exploration activities will adversely impact on their property and livelihood and they feel that they have no control over what the exploration company can and can’t do on their property. In short, the landowner reposes very little trust in the explorer.
The CSG Industry should have been an unmitigated success story for Queensland: an abundant resource in great demand by a world energy market turning to a new source. But the Industry’s public relationship exercise has been so badly implemented that its only success seems to be the rate at which it has converted landholders into activists. 
Whilst it is early days, a properly functioning GasFields Commission and Gasfields Community Leaders Council, with the right people to guide its activities, may provide the means to bridge the schism between landholders and resource companies.