Coal seam gas pipeline in Queensland could result in compulsory acquisitions of land

19 July 2012 By

Graziers in compulsory acquisition of land dispute with coal seem gas companies

Graziers may have to surrender parts of their land for a coal-seam gas pipeline after the Queensland government granted compulsory acquisition powers to a consortium of international energy giants.

The Queensland Governor-in-Council approved the pipeline for the $18.5 billion GLNG project as an “infrastructure facility of significance” on Friday, providing approval for compulsory acquisition if negotiations between gas company Santos and landholders break down.

The 420km underground pipeline will require a 40m-wide corridor through 177 properties to transport coal-seam gas from the Surat Basin to a liquefied natural gas facility in Gladstone.

Cabinet approved the Santos request for the approval, following similar agreements with two other international gas companies, as it ramps up construction to meet its deadline of export production by 2015.

Santos GLNG Pipeline manager Greg Jones said 87 of the 92 agreements were in place.

“We are currently in advanced negotiations with the remainder and we are confident that we will secure these agreements through our current landholder engagement process” he said.

A spokesman for Deputy Premier Jeff Seeney said the company could apply for compulsory acquisition only as a last resort, and that landholders were compensated and had the right to object to the Co-ordinator-General.

Companies must provide extensive evidence they had taken reasonable steps to secure land agreements, he said.

“IFS approval can only be sought for projects which meet the strict definition of a significant infrastructure facility that has the potential to contribute to the state through economic growth or new jobs and provide wider economic and social benefits to Australia, Queensland or the region” Mr Seeney said.

The GLNG project, a joint venture between Santos, Malaysian gas company Petronas, international resources firm Total and South Korea’s KOGAS, is expected to boost the state’s revenue by $4.1bn each year until 2033 and create 5000 jobs during construction.

In its application, lead partner Santos said the project would have a significant impact on Australia’s balance of trade, with agreements to total $120bn.

But AgForce president Brent Findlay urged all stakeholders to “negotiate in good faith” with realistic expectations.

He said the impact of clearing the easements could have a major impact on landholders’ farms.

“We know that they’re rushing to get the pipelines in place from the gas fields so they can start to move the gas and earn money for the state” he said.

“They need to compensate and respect the landholder.

“It’s a big impost on landholders and every piece of land is different.”

Mr Findlay said it was “absolutely unforgivable” to cut fences or leave holes on properties where stock could fall, as some landholders had reported.

(Source: Rosanne Barrett, The Australian, 17 July 2012)

About Rushmore Forensic – Compulsory Acquisition Valuations

Andrew Firth is a director of Rushmore Group. He is a forensic accountant and business valuer. Andrew has conducted business valuations across a wide range of businesses and for different court jurisdictions. This includes compulsory acquisition valuations.

He is a member of the Institute of Chartered Accountants, and the ICAA Special Interest Group in Business Valuations. He has appeared as an Expert Witness in numerous jurisdictions.

Filed Under: Uncategorized

ADF ends pastoral future with compulsory acquisition

9 July 2012 By

ADF and pastoralists in compulsory acquisition dispute

The drawn-out pastoral compulsory acquisition process for the Cultana Military Base expansion has been a bureaucratic mess and the federal government has been “disrespectful” to families who have been on the land for generations, according to pastoralist Bruce Nutt.

It has taken seven years to get to pre-acquisition point, in which time involvement in the Afghanistan conflict – a key reason cited by the Australian Defence Force for expansion in the area – is being scaled back.

Despite the government’s commitment to have troops exit Afghanistan at the end of 2014, an ADF spokeswoman said a “reduction in offshore operational commitments will not result in reduced training activity“.

She said while the expanded base was primarily required for the defence force, it would also provide training options for “selected coalition partners”.

About half of Pandurra Station, Port Augusta – owned by Mr Nutt – will be ‘swallowed’ in the $59.5 million expansion.

He is fighting against the acquisition of the lease, which has been in his family since 1895, and will affect the aspirations of his grandchildren.

“I still do not believe it is in the right place and their environmental assessments have been completely off the mark” he said.

“And I worry that they are just going to be hiring out this area to foreign troops, such as the Americans, as a money-making operation, which was not stated as the expanded base’s intended use.”

He said an influx of Australian and foreign troops into the small, local communities could have negative social impacts.

Mr Nutt is also concerned that the expanded area – the existing base has severely degraded the fragile environment – will still not be big enough to offset the environmental impact, and the “net will be cast wider” next time, threatening the rest of his property.

He feels frustrated, overpowered, and devastated.

“It is a horrific situation to be in” Mr Nutt said.

“Our past, present and future are being taken away from us.  My priority is to keep my land and we will continue to fight this process.”

The four pastoral families embroiled in the army training area expansion are getting closer to holding direct negotiations with the government about the terms of the compulsory acquisitions.

The pre-acquisition process has finally started with the government flagging its intention, in extensive paid local newspaper advertisements, to acquire the pastoral properties.

(Source:  Stock Journal, June 28 issue, 2012, Louise McBride)

About Rushmore Forensic – Compulsory Acquisition Valuations

Andrew Firth is a director of Rushmore Group. He is a forensic accountant and business valuer. Andrew has conducted business valuations across a wide range of businesses and for different court jurisdictions. This includes compulsory acquisition valuations.

He is a member of the Institute of Chartered Accountants, and the ICAA Special Interest Group in Business Valuations. He has appeared as an Expert Witness in numerous jurisdictions.

 

Filed Under: Compulsory Acquisition Tagged With:

Compulsory acquisition of land for Queensland rail corridors

14 June 2012 By

Business valuations may be required for proposed compulsory acquisition of land

The Queensland Government has announced two rail corridors to service new and existing coal mines in both the Galilee and Bowen Basins in the state’s central and western regions.

State Development, Infrastructure and Planning Minister Jeff Seeney says the plan will replace eight different railway proposals put forward under the previous Labor Government.

Mr Seeney says the State Government will use its powers to compulsorily acquire the land for new rail lines.

“The compulsory acquisition of land is always a difficult task and it’s always tough for landholders and I know how distressing it can be for some landholders, but it is an essential part of building infrastructure and I am particularly concerned to ensure landholders are treated fairly. ”

The announcement of the corridors was touted by government as a win for industry and landowners, but some landholders says it’s their worst fears realised.

Those in the path of the proposed lines will now face compulsory acquisition if they cannot come to an agreement with coal companies.

Clermont grazier and Agforce councillor Peter Anderson says they were hoping for just one line through the region.

“When the Hancock GVK line was announced, they realised then that that corridor would not suit the whole Galilee Basin and therefore there would inevitably have to be a second corridor, and I think they’ll be gutted, for the want of a better word.”

About Rushmore Forensic

Andrew Firth is a director of Rushmore Group. He is a forensic accountant and business valuer. Andrew has conducted business valuations across a wide range of businesses and for different court jurisdictions.   He is a member of the Institute of Chartered Accountants, and the ICAA Special Interest Group in Business Valuations. He has appeared as an Expert Witness in numerous jurisdictions.

Filed Under: Business Valuation Tagged With: ,