LAND COURT OF QUEENSLAND
CITATION: Deimel v Phelps & Anor [2019] QLC 4 PARTIES: Wolfgang Deimel
(applicant)v Mark Harry Phelps and Christine Phelps
(respondents)FILE NOs: MRA369-17
MRA150-18DIVISION: General Division PROCEEDING: Determination of compensation payable for the grant of mining lease and advanced activities on exploration permit DELIVERED ON: 6 February 2019 DELIVERED AT: Brisbane HEARD ON: 16 May 2018
Submissions closed 9 July 2018HEARD AT: Brisbane MEMBER: PA Smith ORDERS: As regards MLA 100140 (MRA369-17):
Compensation is determined for the grant of MLA 100140 in the total sum of Seventeen Thousand Five Hundred Dollars ($17,500). 1.
The applicant is ordered to pay the respondents the sum of Seventeen Thousand Five Hundred Dollars ($17,500) by way of yearly instalments of One Thousand, Seven Hundred and Fifty Dollars ($1,750). The first instalment is to be paid within one (1) month of the grant of MLA 100140 and the further instalments yearly thereafter for the ten (10) year term of the lease. 2.
Any party seeking costs is to file and serve their submissions as to costs by 4:00pm, 22 February 2019. Any submissions in response are to be filed and served by 4:00pm on 1 March 2019 and any submissions in reply are to be filed and served by 4:00pm on 8 March 2019.3.
As regards EPM 25185 (MRA150-18):
1. Compensation for the advanced activity of cutting the first costean is assessed in the sum of One Hundred and Fifty Eight Dollars ($158).
2. Compensation for the second and all following costeans is assessed in the sum of One Hundred Dollars ($100) for each costean.
3. Where possible, the applicant is to give the respondents up to seven (7) days’ notice in advance of the creation of each costean. If advance notice of the applicant’s intention to cut a costean cannot reasonably be given, at the absolute minimum, the applicant must give the respondents notice of the existence of each new costean not later than seven (7) days after each costean is cut.
4. Compensation with respect to each new costean is to be paid by the applicant to the respondents within one (1) month of each new costean being cut.
5. Any party seeking costs is to file and serve their submissions as to costs by 4:00pm, 22 February 2019. Any submissions in response are to be filed and served by 4:00pm on 1 March 2019 and any submissions in reply are to be filed and served by 4:00pm on 8 March 2019.
CATCHWORDS: ENERGY AND RESOURCES – MINERALS – MINING FOR MINERALS – COMPENSATION – compensation determination for mining lease application – compensation determination for advanced activities on exploration permit for minerals – valuation of land – where no particular method of valuation must be adopted – where only one independent valuation expert gave evidence – where not all expert conclusions are supported by the facts – where the principle of equivalence applies – where diminution in value to landowner is considered – where landowner…
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- AGLC
- Deimel v Phelps & Anor [2019] QLC 4
- Case
- [2019] QLC 4
- Decision Date
CaseChat Overview and Summary
The court was required to decide on the valuation of the land for the mining lease and the appropriate compensation for the advanced activities on the exploration permit. The court noted that while no specific method of valuation was mandated, the principle of equivalence applied, and the compensation should reflect the diminution in value to the landowner. The court also had to consider whether factors such as loss of stock dam, professional fees, and expert report fees were relevant in determining the compensation. Additionally, the court had to decide whether the grazing of livestock, the absence of fencing, and the use of chemical leaching in the gold extraction process were considerations for compensation. The court further assessed whether the owner's time and the significant disturbance of land were relevant factors in determining the compensation.
The court determined that the compensation for the grant of the mining lease should be Seventeen Thousand Five Hundred Dollars ($17,500), to be paid in yearly instalments of One Thousand, Seven Hundred and Fifty Dollars ($1,750) over the ten-year term of the lease. Regarding the advanced activities on the exploration permit, the court assessed the compensation for cutting the first costean at One Hundred and Fifty Eight Dollars ($158) and for each subsequent costean at One Hundred Dollars ($100). The court ordered that the applicant must give the respondents up to seven days’ notice in advance of the creation of each costean, or at the absolute minimum, notice of the existence of each new costean not later than seven days after it is cut. The compensation for each new costean is to be paid by the applicant to the respondents within one month of each new costean being cut.
The court made orders for the payment of compensation and established a timeframe for the filing and serving of submissions as to costs. The applicant is to pay the respondents Seventeen Thousand Five Hundred Dollars ($17,500) for the mining lease, in yearly instalments of One Thousand, Seven Hundred and Fifty Dollars ($1,750). For the exploration permit, the applicant is to pay the respondents One Hundred and Fifty Eight Dollars ($158) for the first costean and One Hundred Dollars ($100) for each subsequent costean, within one month of each new costean being cut. Submissions as to costs were to be filed and served by specific dates, with responses and replies to follow.
Orders
Orders of the court
As regards MLA 100140 (MRA369-17):
Compensation is determined for the grant of MLA 100140 in the total sum of Seventeen Thousand Five Hundred Dollars ($17,500). 1.
The applicant is ordered to pay the respondents the sum of Seventeen Thousand Five Hundred Dollars ($17,500) by way of yearly instalments of One Thousand, Seven Hundred and Fifty Dollars ($1,750). The first instalment is to be paid within one (1) month of the grant of MLA 100140 and the further instalments yearly thereafter for the ten (10) year term of the lease. 2.
Any party seeking costs is to file and serve their submissions as to costs by 4:00pm, 22 February 2019. Any submissions in response are to be filed and served by 4:00pm on 1 March 2019 and any submissions in reply are to be filed and served by 4:00pm on 8 March 2019.3.
As regards EPM 25185 (MRA150-18):
1. Compensation for the advanced activity of cutting the first costean is assessed in the sum of One Hundred and Fifty Eight Dollars ($158).
2. Compensation for the second and all following costeans is assessed in the sum of One Hundred Dollars ($100) for each costean.
3. Where possible, the applicant is to give the respondents up to seven (7) days’ notice in advance of the creation of each costean. If advance notice of the applicant’s intention to cut a costean cannot reasonably be given, at the absolute minimum, the applicant must give the respondents notice of the existence of each new costean not later than seven (7) days after each costean is cut.
4. Compensation with respect to each new costean is to be paid by the applicant to the respondents within one (1) month of each new costean being cut.
5. Any party seeking costs is to file and serve their submissions as to costs by 4:00pm, 22 February 2019. Any submissions in response are to be filed and served by 4:00pm on 1 March 2019 and any submissions in reply are to be filed and served by 4:00pm on 8 March 2019.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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