Epic Energy (WA) Nominees Pty Ltd v Michael

The plaintiffs, Epic Energy (WA) Nominees Pty Ltd and Epic Energy (WA) Transmission Pty Ltd, are the owner and operator of the Dampier to Bunbury natural gas pipeline. They brought proceedings against the defendant, Dr Kenneth Comninos Michael, the Western Australian Independent Gas Pipelines Access Regulator, challenging the validity of certain regulations made under the Gas Pipelines Access (Western Australia) Act 1996 ("the Act"). The plaintiffs sought declarations of invalidity or proper construction of the Gas Pipelines Access (Western Australia) (Funding) Regulations 1999 ("the funding regulations"). The Attorney General for Western Australia intervened in support of the validity of the regulations. The main legal issues were whether the regulations permitted full cost recovery and whether they allowed for the recovery of legal costs incurred in judicial proceedings. The court held that the funding regulations were within power and valid, but that the regulations should be construed to import a requirement of reasonableness into the service charges. Additionally, the regulations should not be construed as permitting the Regulator to recover costs incurred in judicial review proceedings. The court made declarations to that effect.