McGrath v Callaghan & Ors - [2011] QLC 29

LAND COURT OF QUEENSLAND

CITATION: McGrath v Callaghan & Ors [2011] QLC 0029

PARTIES:In the matter of Mining Leases No 20349 – Application by William David McGrath for determination of compensation payable to KJ, SM, SB, DL, TJ and CA Callaghan and CG Gostelow
FILE NO:MRA1342-08
PROCEEDING:  Application for determination of compensation
DELIVERED ON:         4 May 2011
DELIVERED AT:                   Brisbane
MEMBER:His Honour PA Smith
ORDERS:1.    Total compensation awarded under all heads in the sum of $27.50.
2.The miner pay the total compensation of $27.50 to the landowners within a period of three months from notification of grant of the mining lease by the Mining Registrar.

CATCHWORDS: MINING LEASE – ACCESS – DETERMINATION OF COMPENSATION – offer by miner – offer significantly above award of compensation – offer not accepted by landholders – Court has obligation to determine quantum of compensation notwithstanding offer
Mineral Resources Act 1989, ss 279, 281

Smith v Cameron [1986-87] 11 QLCR
Shaw v Heritage Holdings Pty Ltd [1992-93] 14 QLCR
Mitchell v Oakhill and Mitchell (10 March 1998) unreported
Re Fitzgerald & Anor and SR Struber & Anor [2009] QLC 0076

APPEARANCES: Not applicable – Heard on the Papers

Background

The applicant William David McGrath (the miner) seeks the grant of Mining Lease 20349 in the Mareeba District for a term of 5 years.
The mining lease was applied for on 23 October 2001. Thereafter, due to the native title requirements of the Mineral Resources Act 1989 (“MRA”), a significant period of time elapsed. Recently, all formal native title processes under the NTA were satisfactorily completed.
The mining lease application was not subject to any objections. Accordingly, pursuant to s.773 (3) of the MRA, the amended s 265 applies to this application.[1]
[1] See Mines and Energy Legislation Amendment Act 2010.
Part of the access to Mining Lease 20349 is over land described as Lot 1 on MPH 35537, County of Chelmsford, Parish of Palmerville, owned by KJ, SM, SB, DL, TJ and CA Callaghan and CG Gostelow (“the landholders”). The access over Lot 1 is approximately 350 metres long and 10 metres wide, making a total area of 3500 square metres, or about 1/3 of a hectare.

The MRA

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 at the office of the Mining Registrar, or in the absence of such an agreement, a determination of compensation has been made by the Court. In this instance, the miner requested the Mining Registrar that the matter be referred to the Land Court as he had been unable to reach a negotiated agreement with the landholders. The Mining Registrar subsequently referred the matter to the Court for determination.
The matters which must be considered by the Court are set forth in s.281(3) of the MRA. Although s.281 sets out the matters to be considered, it does not define any method of assessment. In

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading McGrath v Callaghan & Ors

Details

AGLC: McGrath v Callaghan [2011] QLC 29
Case: [2011] QLC 29
Decision Date: 4 May 2011

CaseChat Overview and Summary

In the Land Court of Queensland, His Honour PA Smith considered an application by William David McGrath for the determination of compensation payable to the landholders in relation to Mining Lease No 20349. The application was brought under the Mineral Resources Act 1989, as the miner was unable to reach an agreement with the landholders on compensation. The landholders did not file any material or make any submissions to the Court. The miner offered to pay $75 per year, however this offer was not accepted by the landholders. The Court was required to determine the quantum of compensation under s.281 of the MRA, which sets out the matters to be considered but does not define any method of assessment. The Court determined compensation by applying the principle of equivalence, which seeks to place the landholders in the same position as if the mining lease was not granted. The Court awarded $25.00 for access, and an additional $2.50 under s.281(4)(e) of the MRA to reflect the compulsory nature of the grant of the mining lease. In total, the Court awarded compensation in the sum of $27.50. The miner was ordered to pay the total compensation of $27.50 to the landowners within a period of three months from notification of grant of the mining lease by the Mining Registrar. No order for costs was made.

Orders