Gregcarbil Pty Ltd v Backus (No. 4)

Case [2013] QLC 68


LAND COURT OF QUEENSLAND

CITATION: Gregcarbil Pty Ltd v Backus & Ors (No. 4) [2013] QLC 68
PARTIES:

Gregcarbil Pty Ltd
(Applicant)

v.

Cameron Backus and Louisa Backus
(Landholders)
(MRA464-13 and MRA465-13)

and

Gregcarbil Pty Ltd
(Applicant)

v.

William James Crowther
(Landholder)
(MRA229-11 and MRA894-11)

FILE NOs: MRA229-11, MRA894-11, MRA464-13 and
MRA465-13
DIVISION: General Division
PROCEEDING: Determination of compensation payable for Mining Leases
DELIVERED ON: 20 December 2013
DELIVERED AT: Brisbane

HEARD ON:

21 October 2013
(1, 2, 3 August 2011
19 October 2011
28, 29, 30 November 2011
19 April 2012)

HEARD AT: Emerald (Clermont and Brisbane)
MEMBER: PA Smith
ORDERS:

1.     As regards MLA 70419 (file MRA 229-11) compensation is determined in the total sum of $96,133.06

2.     Further as regards MLA 70419 (file MRA 229-11) Gregcarbil is ordered to pay the compensation to Mr Crowther by way of instalments, with the sum of $16,133.06 payable within one month of the grant of MLA 70419, followed by payments of $20,000 on the first, second, third and fourth anniversary of the grant of MLA 70419.

3.     As regards MLA 70447 (file MRA 894-11) compensation is determined in the total sum of $102,930.45.

4.     Further as regards MLA 70447 (file MRA 894-11) Gregcarbil is ordered to pay the compensation to Mr Crowther by way of instalments, with the sum of $22,930.45 payable within one month of the grant of MLA 70447, followed by payments of $20,000 on the first, second, third and fourth anniversary of the grant of MLA 70447.

5.     As regards MLA 70419 (file MRA 464-13) compensation for access is determined in the total sum of $2,127.39.

6.     Further as regards MLA 70419 (file MRA 464-13) Gregcarbil is ordered to pay the total compensation of $2,127.39 to Mr and Mrs Backus within one month of the grant of MLA 70419.

7.     As regards MLA 70447 (file MRA 465-13) compensation for access is determined in the total sum of $2,127.39.

8.     Further as regards MLA 70447 (file MRA 465-13) Gregcarbil is ordered to pay the total compensation of $2,127.39 to Mr and Mrs Backus within one month of the grant of MLA 70447.

CATCHWORDS:

Mineral Resources Act 1989

MINING – compensation for mining lease – statutory lands, Mineral Resources Act [MRA] s 281 – method of valuation – conflicting authorities – no separate assessment for each head – principle of equivalence – no “doubling-up” – consider circumstances of each case

MINING – compensation for mining lease –  deprivation of use of surface area –  relevant factors:  term of lease, area impacted, ease of continued grazing –  percentage allowance, not a mathematical exercise

MINING – compensation for mining lease – effect on balance land – additional allowance – (0.5%)

MINING – compensation for mining lease – where lease over small area of large holding – method of assessment – valid for total compensation to exceed pro rata value of lease area

MINING – compensation for mining lease – miscellaneous claims – loss of owner’s time allowed – need…

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Details
AGLC
Gregcarbil Pty Ltd v Backus (No. 4) [2013] QLC 68
Case
[2013] QLC 68
Decision Date

CaseChat Overview and Summary

Gregcarbil Pty Ltd (the respondent) was granted two mining leases over land owned by Mr Crowther and two adjoining leases over land owned by Mr and Mrs Backus. Mr Crowther and Mr and Mrs Backus brought claims under the Mineral Resources Act for compensation in respect of the mining leases. The claims included compensation for the loss of use of the surface area, compensation for the effect on the balance land, and compensation for access over the adjoining properties. The claims were heard together by the Supreme Court of Queensland.

The court was required to determine the method of assessing compensation for the mining leases under the Mineral Resources Act. The court had to consider whether compensation for the loss of use of the surface area was a percentage allowance or a mathematical exercise. The court also had to consider whether compensation for the effect on the balance land was an additional allowance of 0.5%. The court had to determine whether compensation for access over the adjoining properties included compensation for the cost of gates and grids.

The court held that compensation for the loss of use of the surface area was a percentage allowance, not a mathematical exercise. The court held that compensation for the effect on the balance land was an additional allowance of 0.5%. The court held that compensation for access over the adjoining properties included compensation for the owner’s time, but not for the cost of gates and grids. The court held that the principle of equivalence meant that there should be no “doubling-up” of compensation, and that the circumstances of each case should be considered.

The court ordered that Gregcarbil pay Mr Crowther compensation in the total sum of $96,133.06 and $102,930.45 for the two mining leases, with instalments payable over five years. The court ordered that Gregcarbil pay Mr and Mrs Backus compensation in the total sum of $2,127.39 for each of the two adjoining leases, payable within one month of the grant of the mining leases.

Orders

Orders of the court

1. As regards MLA 70419 (file MRA 229-11) compensation is determined in the total sum of $96,133.06

2. Further as regards MLA 70419 (file MRA 229-11) Gregcarbil is ordered to pay the compensation to Mr Crowther by way of instalments, with the sum of $16,133.06 payable within one month of the grant of MLA 70419, followed by payments of $20,000 on the first, second, third and fourth anniversary of the grant of MLA 70419.

3. As regards MLA 70447 (file MRA 894-11) compensation is determined in the total sum of $102,930.45.

4. Further as regards MLA 70447 (file MRA 894-11) Gregcarbil is ordered to pay the compensation to Mr Crowther by way of instalments, with the sum of $22,930.45 payable within one month of the grant of MLA 70447, followed by payments of $20,000 on the first, second, third and fourth anniversary of the grant of MLA 70447.

5. As regards MLA 70419 (file MRA 464-13) compensation for access is determined in the total sum of $2,127.39.

6. Further as regards MLA 70419 (file MRA 464-13) Gregcarbil is ordered to pay the total compensation of $2,127.39 to Mr and Mrs Backus within one month of the grant of MLA 70419.

7. As regards MLA 70447 (file MRA 465-13) compensation for access is determined in the total sum of $2,127.39.

8. Further as regards MLA 70447 (file MRA 465-13) Gregcarbil is ordered to pay the total compensation of $2,127.39 to Mr and Mrs Backus within one month of the grant of MLA 70447.

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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