Mineral, Water and Other Legislation Amendment Bill 2018
Plain English Summary
Overview
This bill makes wide-ranging changes to Queensland's mineral resources and water management laws. It improves dispute resolution between landholders and resource companies, requires climate change to be explicitly considered in water planning, recognises Aboriginal and Torres Strait Islander cultural values in water plans, and gives the government new emergency powers to address urgent water quality problems.
Who it affects
Landholders on mining and gas-affected land gain better negotiation rights and new arbitration options. Aboriginal and Torres Strait Islander communities gain formal recognition of cultural water values. Water licence holders may access previously reserved water supplies temporarily. Mining and gas companies face new obligations around dispute resolution, notification and reporting.
Landholder-resource company dispute resolution
Reforms how landholders and resource companies resolve disputes over land access compensation and make good agreements, following the Independent Review of the Gasfields Commission Queensland. Introduces arbitration as a new option alongside the Land Court.
- New arbitration pathway for compensation and make good agreement disputes as an alternative to the Land Court
- Resource companies must now also cover agronomist costs during negotiations with landholders
- Departmental conferences removed as a prerequisite before parties can apply to the Land Court
- If parties cannot agree on a mediator, either the Land Court or a prescribed ADR institute can appoint one
Mining compensation referrals
Changes how unresolved compensation disputes between miners and landholders are handled for mining claims and leases. The automatic referral by the department to the Land Court is removed.
- Automatic referral of unresolved compensation matters to the Land Court removed
- Either party can now voluntarily refer compensation disputes to the Land Court at any time
- Mining lease and claim renewal applicants must notify landholders of their application within five business days
- Minister may refuse to grant or renew a mining claim or lease if compensation remains unresolved
Climate change and water planning
Makes it an explicit requirement for the Minister to consider the effects of climate change on water resources when preparing water plans and water use plans.
- Minister must consider water-related effects of climate change on water availability when preparing water plans
- Minister must consider climate change effects on water use practices when preparing water use plans
Aboriginal and Torres Strait Islander cultural water values
Enhances water planning to formally recognise and protect the cultural values of water resources for Aboriginal peoples and Torres Strait Islanders, separate from existing economic, social and environmental outcomes.
- Water plans must now include cultural outcomes for Aboriginal peoples and Torres Strait Islanders
- Cultural outcomes are specified separately from economic, social and environmental outcomes
- Definition of 'environment' in the Water Act expanded to align with the Environmental Protection Act 1994, including cultural conditions
- Minister must consider interests of Aboriginal and Torres Strait Islander parties when making draft water plans
Temporary access to strategic water reserves
Creates a new mechanism to temporarily release water held in strategic infrastructure reserves while it is not needed for planned projects, through water licences of up to three years.
- Chief executive can temporarily release unallocated water from strategic water infrastructure reserves
- Temporary water licences granted for a maximum of three years and cannot be renewed or transferred
- Water returns to the reserve when the licence expires, protecting it for future infrastructure projects
- Chief executive must consider whether the water is likely to be needed for its intended purpose in the short term
Urgent water quality emergency powers
Gives the Minister and chief executive new powers to direct water infrastructure operators to take urgent action during water quality emergencies, even if those actions conflict with existing water plans or licences.
- New power for the Minister and chief executive to direct actions to deal with urgent water quality issues
- Directions can override existing water plans, operational licences and management protocols
- Failure to comply with a water quality direction attracts a penalty of 1,665 penalty units
- Entities complying with directions are protected from civil liability, and the official must publish a public report on the incident
Mining administration modernisation
Phases out hard copy mining instruments in favour of the electronic MyMinesOnline register, streamlines reporting requirements, and fixes various drafting errors across multiple resource Acts.
- All hard copy instruments for mining tenements and petroleum authorities replaced by electronic MyMinesOnline records
- New processes for transferring and decommissioning water monitoring bores, including transfer to the State
- Existing coal mining projects can apply for contiguous exploration permits (up to six sub-blocks) outside the competitive tender process
- Safety provisions confirmed to apply equally to petroleum operations under the Petroleum Act 1923
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee15 Feb 2018View Hansard
Referred to State Development, Natural Resources and Agricultural Industry Development Committee
The State Development, Natural Resources and Agricultural Industry Development Committee examined the bill over several months, receiving submissions and holding public hearings with stakeholders including landholder groups, the Queensland Law Society, AgForce, and resource industry representatives. The committee recommended the bill be passed, while making six additional recommendations addressing landholder compensation rights, legal representation in arbitration, educational materials on dispute resolution, and water quality reporting timeframes. The government supported or noted all seven recommendations.
Key findings (5)
- Landholder and legal groups raised significant concerns about proposed changes to compensation provisions, arguing that neighbouring landholders without resource activity on their land could lose compensation rights.
- Stakeholders strongly opposed restrictions on legal representation during arbitration, with the committee recommending parties have an explicit right to legal representation.
- The committee found that the bill's implementation of Gasfields Commission recommendations on dispute resolution and negotiation processes was broadly supported, but required improvements to protect landholder interests.
- Several submitters raised concerns about how landholder time-related costs in negotiating conduct and compensation agreements should be calculated and compensated.
- The committee examined amendments to strengthen climate change considerations in water planning and new direction powers for addressing water quality issues.
Recommendations (7)
- The committee recommends the Mineral, Water and Other Legislation Amendment Bill 2018 be passed.
- The committee recommends that the Minister in his second reading speech clarify the effectiveness of the current arrangements in addressing compensation for landholders who do not have resource tenure activity on their land but may be affected by the impacts of such activity.
- The committee recommends that the Department of Natural Resources, Mines and Energy develops an extensive suite of educational material regarding the arbitration process, conducts information sessions with peak bodies and affected communities, and reports to the committee in November 2018 on the development and distribution of this material.
- The committee recommends that proposed s 91C be removed and that the Bill be amended so that parties have the right to legal representation during arbitration.
- The committee recommends that the Department of Natural Resources, Mines and Energy collaborates with stakeholders to investigate developing a methodology to determine reasonable landholder time-related costs and how this could be included in legislation.
- The committee recommends that the Bill be amended to remove proposed s 91 from cl 46 and retain the current provisions with respect to professional costs as set out in s 81(4)(b) of the Mineral and Energy Resources (Common Provisions) Act 2014, with a minor amendment to include the costs of an agronomist.
- The committee recommends that the Minister clarifies, during his second reading speech, the timeframe proposed for an official to report on a direction given to a relevant entity to take action on a water quality issue.
Committee report tabled
▸Second Reading18 Oct 2018View Hansard
▸14 members spoke12 support1 oppose1 mixed
As Minister for Natural Resources, Mines and Energy, introduced and moved the bill, highlighting improvements to dispute resolution between landholders and resource companies, water planning enhancements including climate change considerations, and recognition of Aboriginal and Torres Strait Islander cultural values in water plans.
“The amendments proposed today will improve the negotiation of these agreements, making the process for landholders and resources companies more straightforward and cost effective.”— 2018-10-18View Hansard
Supported the bill contingent on the government adopting the committee's recommendations, particularly regarding legal representation during arbitration and landholder cost recovery. Emphasised the importance of coexistence between mining and agriculture.
“I say at the outset that the LNP's support of this bill is contingent on the government adopting the recommendations contained within the parliamentary committee report and I am pleased that the minister has addressed those recommendations here today.”— 2018-10-18View Hansard
Supported the bill as committee chair, emphasising the importance of explicitly accounting for climate change in water planning, recognising cultural water values, and ensuring landholder access to legal representation during arbitration.
“I believe we need to have confidence in the data on climate change. It is called science. It is called evidence.”— 2018-10-18View Hansard
Supported the bill as a committee member, particularly welcoming the removal of section 91C to ensure landholders have the right to legal representation during arbitration, drawing on personal experience negotiating with a resource company.
“I have had personal experience negotiating with a resource company for a compensation agreement. I know what an intimidating process that is. You are heavily outgunned.”— 2018-10-18View Hansard
Supported the bill, summarising its key objectives including implementing GasFields Commission recommendations, removing automatic Land Court referrals, and enhancing the water planning framework.
“I rise to speak in support of the Mineral, Water and Other Legislation Amendment Bill 2018.”— 2018-10-18View Hansard
Supported the bill as amended, welcoming the committee's bipartisan approach and the minister's amendments to ensure landholder legal representation in arbitration, while criticising the government's delay in debating the bill.
“This bill is an example of how the committee process can work to improve legislation when dealt with in a fair and reasonable manner. I will be supporting the bill as amended.”— 2018-10-18View Hansard
Supported the bill, focusing on the water planning amendments including explicit climate change consideration and recognition of Aboriginal and Torres Strait Islander cultural values in water management.
“The Palaszczuk government wants to ensure that Queenslanders have the utmost confidence in their water supply, and they know that climate change is front of mind when we are planning for water.”— 2018-10-18View Hansard
Supported the bill as a committee member, noting the committee's recommendations had addressed the key issues raised by submitters, particularly regarding landholder legal representation and compensation costs.
“I believe all of the recommendations satisfy the issues raised by submitters. Given this and the success and inclusiveness of the committee process, and with the recommendations being taken into consideration, I support the passing of this bill.”— 2018-10-18View Hansard
Supported the bill from the perspective of her electorate where mining, manufacturing and agriculture all operate, focusing on water planning amendments including climate change adaptation and recognition of cultural water values.
“People who live in my region want a balanced approach to water management and are prepared to work alongside each other's industries.”— 2018-10-18View Hansard
Supported the bill with some reservations, welcoming improvements to the CCA negotiation process and temporary access to unallocated water, but expressed concern about the untested nature of the new arbitration process and the need for robust science in water planning.
“It is vital for the good of Queenslanders and the good of the Central Highlands that these two industries can coexist.”— 2018-10-18View Hansard
Broadly supported the bill but raised serious concerns about narrowing of landholder compensation rights for off-property impacts, moving an amendment to retain the existing wording in section 81. The amendment was defeated 6-83.
“Short of that, I broadly support the bill.”— 2018-10-18View Hansard
Supported the bill, noting the government's acceptance of committee recommendations as a major factor, and raised a unique case involving original freehold mineral rights and coal seam gas extraction affecting neighbouring landholders.
“One of the major factors of the LNP's support for this bill has been the government's acceptance of sensible recommendations suggested by the LNP committee members.”— 2018-10-18View Hansard
Supported the bill, highlighting the importance of releasing unallocated water for his electorate and the proposed Emu Swamp Dam project on the Granite Belt.
“The LNP supports this bill. I would like to thank the minister for his speech today which alleviated a number of concerns that we had regarding the adherence of the legislation to the recommendations of the committee.”— 2018-10-18View Hansard
Opposed the bill, arguing the new arbitration mechanism disadvantages smaller landholders against large resource companies and removes the right to appeal to the Land Court after binding arbitration.
“It is an extraordinary legal precedent that denies a person the right to pursue a bona fide matter inside a regular court of law, especially involving such a significant matter as water supply. On those grounds, I believe that the Mineral, Water and Other Legislation Bill 2018 is not worthy of my support.”— 2018-10-18View Hansard
▸In Detail18 Oct 2018View Hansard
Amendment to clause 38 to replace the narrower wording 'caused by ... activities on' with the broader 'relating to' in section 81, to preserve neighbouring landholders' rights to claim compensation for off-property impacts of resource activities.
That the amendment be agreed to
Vote on Mr Berkman's (Greens) amendment to clause 38 seeking to retain the existing broader wording in section 81 regarding landholder compensation, to ensure neighbouring landholders could still claim compensation for off-property impacts of resource activities. The amendment was defeated 6-83.
The motion was defeated.
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Ayes (6)
Noes (83)
Government amendments moved en bloc: removed proposed section 91C restricting legal representation in arbitration (implementing committee recommendation 4); corrected a minor drafting error in clause 67; removed equivalent legal representation restrictions for make-good agreement arbitration; and inserted a transitional provision clarifying that cultural outcome requirements in water plans are not retrospective.