Nicholls v Stephens

Case [2018] QLC 32


LAND COURT OF QUEENSLAND

CITATION: Nicholls v Stephens & Anor [2018] QLC 32
PARTIES: Dean George Nicholls
(applicant)
v
Manfred Henery Stephens  
(respondent)
Maxwell George Hazel
(respondent)
FILE NO: MRA282-17
DIVISION: General division
PROCEEDING: Determination of compensation for renewal of mining lease
DELIVERED ON: ­­4 October 2018
DELIVERED AT: Brisbane
HEARD ON: Submissions closed 25 January 2018
Allocated on 2 August 2018
HEARD AT: Heard on the papers
MEMBER: WL Cochrane
ORDERS:

1.In respect of the application for renewal of ML 4157, compensation is determined in the amount of Thirty-Eight Dollars and Fifty Cents ($38.50) per annum, which is One Hundred and Ninety-Two Dollars and Fifty Cents ($192.50) for the life of the lease.  

2. Dean George Nicholls is to pay to Manfred Henery Stephens and Maxwell George Hazel compensation in the amount set out in Order 1, namely, One Hundred and Ninety-Two Dollars and Fifty Cents ($192.50), within thirty (30) days from the notification of the renewal of the mining lease by the Department of Natural Resources, Mines and Energy.

CATCHWORDS:

ENERGY AND RESOURCES – MINERALS – MINING FOR MINERALS – COMPENSATION – where no material provided by either party – factors to be considered

Mineral Resources Act 1989 s 85(12), s 279A, s 281

Alphadale Pty Ltd v Dore & Ors [2016] QLC 15, considered
Hoolihan v Prichard [2009] QLC 172, considered
Keyse v Phillipson & Ors [2016] QLC 40, considered
Wills v Minerva Coal Pty Ltd (No. 2) (1998) 19 QLCR 297, considered
Thomsen v Struber [2017] QLC 33, considered
Pavey & Anor v Struber & Anor [2017] QLC 63, considered
Skrzypczynski & Ors v Hutchinson [2017] QLC 4, considered

APPEARANCES:

Not applicable

  1. This matter is a decision on referral by the Chief Executive of the Department of Natural Resources and Mines (DNRM) to the Land Court pursuant to s 279A of the Mineral Resources Act 1989 (MRA) for the determination of compensation in respect of the renewal of mining lease 4157.

Background

  1. On 24 June 2016 the applicant miner, Dean George Nicholls, applied to renew ML 4157.

  1. The application sought a renewal of ML 4157 for a term of 5 years set to expire on 30 June 2021.

  1. The subject ML 4157 is located in part on property owned by the respondents, Manfred Henery Stephens and Maxwell George Hazel, which property is described as Lot 1 on CP 900986.

  1. The total area of the mining lease is 5.666 hectares, of which, 3.391 hectares is located on the Stephens/Hazel property.

  1. The mining lease area located on Lot 1 on CP 900986 is an obliquely truncated rectangle running from the north-west to the south-east. Included on the file for this matter is a decision in the matter of Nicholls v Hazel & Anor [1]which is a decision of the then mining registrar, Mr Windridge, in respect of the lease ML 4157 in which case Mr Windridge observed:

“In the absence of detailed submissions and valuation evidence by…

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Details
AGLC
Nicholls v Stephens [2018] QLC 32
Case
[2018] QLC 32
Decision Date

CaseChat Overview and Summary

The matter before the court involved a dispute between Dean George Nicholls and Manfred Henery Stephens and Maxwell George Hazel regarding the renewal of a mining lease, ML 4157, in Australia. The case was heard in a state court. The applicants, Nicholls and Hazel, sought to renew the lease, while the respondents, Stephens and Hazel, contested the renewal on the basis that they were owed compensation.

The primary legal issue before the court was the amount of compensation that should be paid to the respondents in the event that the mining lease was renewed. Both parties presented submissions, but did not provide any material to assist the court in determining the compensation. The court was required to determine the appropriate compensation based on the principles of equity and taking into account relevant factors.

The court held that it was appropriate to determine the compensation based on the principles of equity and the relevant factors. The court noted that the applicants had not provided any material to assist in determining the compensation, and that the respondents had not contested the amount claimed by the applicants. The court found that the compensation should be determined based on the market value of the lease, taking into account the potential revenue that could be generated from the lease. The court determined that the compensation should be Thirty-Eight Dollars and Fifty Cents ($38.50) per annum, which amounted to One Hundred and Ninety-Two Dollars and Fifty Cents ($192.50) for the life of the lease.

The court ordered that the compensation be paid by the applicants to the respondents within thirty days from the notification of the renewal of the mining lease by the Department of Natural Resources, Mines and Energy. The court also ordered that the compensation be paid in the amount of One Hundred and Ninety-Two Dollars and Fifty Cents ($192.50).

Orders

Orders of the court

1.In respect of the application for renewal of ML 4157, compensation is determined in the amount of Thirty-Eight Dollars and Fifty Cents ($38.50) per annum, which is One Hundred and Ninety-Two Dollars and Fifty Cents ($192.50) for the life of the lease.

2. Dean George Nicholls is to pay to Manfred Henery Stephens and Maxwell George Hazel compensation in the amount set out in Order 1, namely, One Hundred and Ninety-Two Dollars and Fifty Cents ($192.50), within thirty (30) days from the notification of the renewal of the mining lease by the Department of Natural Resources, Mines and Energy.

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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