Gotap Pty Ltd v Skelton

Case [2021] QLC 20


LAND COURT OF QUEENSLAND

CITATION:  GOTAP Pty Ltd v Skelton [2021] QLC ­20
PARTIES:

GOTAP Pty Ltd
(applicant)

v

Christopher James Skelton
(respondent)

FILE NO: MRA098-20
PROCEEDING: Determination of compensation payable for renewal of mining lease
DELIVERED ON: 17 June 2021
DELIVERED AT: Brisbane
HEARD ON: Submissions closed 20 April 2021
HEARD AT: Heard on the papers
MEMBER: JR McNamara
ORDERS:

I determine that GOTAP Pty Ltd must pay Christopher James Skelton compensation in respect of ML 95439 as follows:

one sixth of the cost of one weed inspection being the sum of Ten Dollars ($10) paid per annum; and 1.   

if the access road is not maintained and Mr Skelton incurs that expense, one sixth of the cost of any reasonably necessary track maintenance within 28 days of presentation of an invoice. 2.   

CATCHWORDS:

ENERGY AND RESOURCES – MINERALS – MINING FOR MINERALS – COMPENSATION – where matter referred to Land Court for determination – where subject land used for access only – where parties filed compensation statements unsupported by expert evidence – where Court relies on previous determination to reach a compensation figure

Mineral Resources Act 1989 s 279, s 279A, s 281

Washington v Skelton [2021] QLC 11, applied
Wills v Minerva Coal Pty Ltd [No 2] (1998) 19 QLCR 297, applied

APPEARANCES: Not applicable
  1. This matter concerns a referral to the Land Court of a mining compensation matter from the Mineral Hub, Department of Resources (“Resources”) pursuant to s 279A of the Mineral Resources Act 1989 (“MRA”). The referral was filed in the Land Court on 30 June 2020.

Background

  1. On 29 September 2014, the applicant, GOTAP Pty Ltd (“GOTAP”), applied to renew ML 95439 for a period of 10 years. The mining lease is for the purpose of open cut opal mining.

  1. The mining lease is in the Winton Mining District on a property known as Vergemont (Lot 278 on OL363). Access to the mining lease, however, is via the adjacent property owned by the respondent, Christopher James Skelton, Lot 1 on RK4 (Eildon Park) and Lot 2 on RK5 (Mayneside). The length of access is agreed to be a total of 11.8 km and the width of 5 m, the total area comprising 5.9 ha. There has been engagement between Mr Jackson, Sole Director of GOTAP, and Mr Skelton regarding compensation but no agreement.

Relevant legislation

  1. Section 279 of the MRA provides that a mining lease shall not be granted or renewed unless an agreement in relation to compensation has been filed or, in the absence of such an agreement, a determination of compensation has been made by the Land Court. In this matter, no agreement has been lodged with Resources which is why the matter was referred to the Land Court for determination.

  1. Section 281 of the MRA sets out those matters which must be considered by this Court when determining compensation. In particular, s 281(3)(a) provides that an owner of land is entitled to compensation for:

“(i)   deprivation of…

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Details
AGLC
Gotap Pty Ltd v Skelton [2021] QLC 20
Case
[2021] QLC 20
Decision Date

CaseChat Overview and Summary

Gotap Pty Ltd, a mining company, was involved in a dispute with Christopher James Skelton over compensation for the use of his land for mining access. The case was referred to the Land Court of New South Wales for determination. The primary issue was the quantum of compensation owed by Gotap to Skelton for the use of his land, which was used solely for access to a mining site. Both parties submitted compensation statements without supporting expert evidence, complicating the determination of a fair compensation amount.

The court considered the lack of expert evidence and looked to a previous determination for guidance. It was noted that the land in question was not used for any other purpose than providing access, and thus the compensation should reflect this limited use. The court concluded that the compensation should be modest, reflecting the minimal use of the land and the absence of any substantial interference with Skelton's rights.

The court determined that Gotap must pay Skelton one-sixth of the annual cost of a weed inspection, amounting to $10 per year. Additionally, if Skelton incurs any expenses for maintaining the access road and presents an invoice within 28 days, Gotap must pay one-sixth of those expenses. This ruling balanced the need for fair compensation with the limited use of the land and the lack of evidence to support a higher compensation figure.

Orders

Orders of the court

I determine that GOTAP Pty Ltd must pay Christopher James Skelton compensation in respect of ML 95439 as follows:

one sixth of the cost of one weed inspection being the sum of Ten Dollars ($10) paid per annum; and 1.

if the access road is not maintained and Mr Skelton incurs that expense, one sixth of the cost of any reasonably necessary track maintenance within 28 days of presentation of an invoice. 2.

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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