O'Shane v Cook Shire Council

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LAND COURT OF QUEENSLAND

CITATION: O’Shane & Anor v Cook Shire Council [2016] QLC 77
PARTIES: Patrick Daniel Michael O’Shane & Hamish William Bergerson
(applicants)
v
Cook Shire Council
(respondent)
FILE NO: MRA248-16
DIVISION: General Division
PROCEEDING: Determination of compensation for grant of mining lease.
DELIVERED ON: 8 December 2016
DELIVERED AT: Brisbane
HEARD ON: Submissions closed 5 September 2016.
HEARD AT: Heard on the papers
JUDICIAL REGISTRAR: GJ Smith
ORDERS:

1.      In respect of ML 100068 compensation is determined in the total amount of $495.00.

2.      That the applicants pay compensation to the respondent the amount set out in Order 1 within three months of the date of grant of the mining lease by Department of Natural Resources and Mines.

CATCHWORDS:

MINING LEASE – referral – grant – mining lease area –  access – determination of compensation – absence of expert or valuation evidence – use of Court judgments for determination purposes.

Mineral Resources Act 1989 s 279, 281

Fitzgerald & Anor v Struber & Anor [2009] QLC 76

Tinpitch Pty Ltd v Cook Shire Council [2016] QLC 34

Unimin Australia Limited v Freeman [2007] QLC 76

Walker v Cook Shire Council [2015] QLC 19

Wills v Minerva Coal Pty Ltd [No.2] (1998) 19 QLCR 297

APPEARANCES: Not applicable
  1. This proceeding concerns a referral to the Land Court by the Chief Executive, Department of Natural Resources and Mines (DNRM) pursuant to s 279(5) of the Mineral Resources Act 1989 (MRA) for the determination of compensation in respect of the grant of Mining Lease 100068 (ML 100068).  

Background

  1. The applicants, Patrick Daniel Michael O’Shane and Hamish William Bergerson

    (the miners) seek the grant of ML 100068 which is located approximately 9 km south-east of Laura within the Cook Shire local government area. Mapping data provided by DNRM indicates that 2.2 ha of ML 100068 is located within road reserve under the control of the Cook Shire Council (the respondent). The road reserve is more particularly described seg 8505025.

  2. The specific Land Court reference and tenure details are set out as follows: 

Court Reference Tenure ID Relevant Area Term Lease Purpose
MRA248-16 100068 2.2 ha 15 years Gold/Tin
  1. On 15 February 2016 a Certificate of Application for ML 100068 was issued by the Mineral Assessment Hub.

Relevant Legislation

  1. Section 279 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 DNRM and the matter has been referred to the Land Court for determination.

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

“(i)     deprivation of possession of the surface of land of the owner;

(ii) diminution of the value of the land of the owner or any improvements…

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Details
Case
[2016] QLC 77
Decision Date

CaseChat Overview and Summary

O'Shane v Cook Shire Council was a case that arose in the Queensland Land Court. The applicants, O'Shane, sought to have a mining lease granted over certain land, which was subject to a dispute with the respondent, Cook Shire Council. The dispute centred around the amount of compensation that was payable to the respondent in relation to the grant of the mining lease, specifically in relation to the access to the land for mining purposes. The applicants argued that the compensation was excessive, while the respondent argued that the amount was inadequate.

The legal issues before the court were whether the compensation payable for the grant of a mining lease over land subject to a mining lease was properly determined and whether the absence of expert or valuation evidence was a bar to the determination of compensation. The court also needed to consider whether it could rely on previous court judgments to determine the compensation payable.

In determining the compensation payable, the court noted that there was no expert or valuation evidence before it. However, the court held that it was permissible to use previous court judgments to determine the compensation payable, as long as those judgments were applicable to the facts of the case. The court found that the previous judgments were applicable and used them to determine the compensation payable. The court held that the compensation payable was $495.00, which was significantly less than the amount sought by the respondent.

The court ordered that the applicants pay the respondent the sum of $495.00 within three months of the date of grant of the mining lease by the Department of Natural Resources and Mines. This decision highlights the importance of providing expert or valuation evidence in mining lease compensation cases, and the court's willingness to rely on previous judgments to determine compensation where necessary.

Orders

Orders of the court

1. In respect of ML 100068 compensation is determined in the total amount of $495.00.

2. That the applicants pay compensation to the respondent the amount set out in Order 1 within three months of the date of grant of the mining lease by Department of Natural Resources and Mines.

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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