QGC Pty Limited & Ors v Eugenehans Peter Vogt & Anor

Case

[2017] QLC 20

13 April 2017

No judgment structure available for this case.

LAND COURT OF QUEENSLAND

CITATION:                 QGC Pty Limited & Ors v Eugenehans Peter Vogt & Anor

[2017] QLC 20

PARTIES:  QGC Pty Limited

BG International Limited Australia Pacific LNG Pty Limited

CNOOC Coal Seam Gas Company Pty Ltd Tokyo Gas QCLNG Pty Ltd

(applicants) v

Eugenehans Peter Vogt and Elizabeth Marie Vogt (also known as Elizabeth Samad)

(respondents)

FILE NO/s:  PGP147-14

DIVISION:                  General Division

PROCEEDING:          Determination of compensation payable for coal seam gas related activities.

DELIVERED ON:     13 April 2017

DELIVERED AT:      Brisbane HEARD ON: 21 February 2017

HEARD AT:                Brisbane

MEMBER:  WA Isdale

ORDER/S:  1.     The    applicants’     compensation    liability     to    the

respondents under s 537B of the Petroleum and Gas (Production and Safety) Act 2004 (Qld) is $35,000 (compensation amount).

2.      The applicants shall pay the compensation amount to the bank account nominated by the respondents (such account to be specified in a written communication to the applicants signed by the first and second respondent), the applicants to make such payment by way of electronic funds transfer within 28 days of receipt of the written communication.

3.      The applicants will not be liable to pay any interest upon  the  compensation  amount  under  statute  or

otherwise unless they fail to comply with paragraph 2 above.

4.Pursuant to s 537DB and s 537DC of the Petroleum and Gas (Production and Safety) Act 2004 (Qld), the terms of the conduct and compensation agreement attached hereto and marked “A” are imposed as conditions between the parties.

CATCHWORDS:      ENERGY AND RESOURCES – GAS – OTHER MATTERS

– where the applicants apply to the Court for it to decide the applicants’ compensation liability to the respondents in respect of its coal seam gas related activities – where the applicants apply to the Court for an order imposing conditions on the parties – where respondents non-responsive.

Mineral and Energy Resources (Common Provisions) Act 2014 s 228

Petroleum and Gas (Production and Safety) Act 2004 ss 532, 537B, 537DB, 537DC

Birla Mt Gordon Pty Ltd v Calton Hills Pty Ltd [2015] QLC 2 APPEARANCES:      M G Lyons (instructed by Corrs Chambers Westgarth) for the

applicants

No appearance for either respondent

Background

[1]West of Dalby and south of Chinchilla lies the respondents’ 337.5 ha freehold land. Below the surface is a resource of coal seam gas. The applicants have installed infrastructure to extract the gas. There are 6 wells, access tracks and buried pipes to collect the water and gas extracted and infrastructure to move it on to processing and transport.

[2]Despite attempts to arrive at an agreement about the amount of compensation payable to the respondents, agreement has not been reached. The applicants have now come to the Court. They are seeking a determination of the amount of compensation payable to the respondents and an order imposing conditions on the parties to regulate their future relations in respect of the infrastructure on the land.

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The positions of the parties

[3]      The applicants, in their amended originating application, are seeking the following –

1.The applicants apply to the Land Court under s 537B of the Act for it to decide the applicants’ compensation liability to the respondents for the activities. Further, or alternatively, the applicants apply to the Land Court under s 537DB of the Act for it to decide the applicants’ compensation liability to the respondents in respect of the activities.

2.Further, the applicants apply to the Land Court for an order under ss 537DB and 537DC of the Act that the Land Court impose conditions upon the parties:

(a)in the form of the draft Conduct and Compensation Agreement at exhibit DPB-12  to  the  affidavit  of  Daniel  Paul  Byrne  sworn 2 November 2016 with Schedule 3 of the draft agreement to be varied so that it is consistent with the determination of the Land Court pursuant to order 1 above; or

(b)in the form the Court considers appropriate.

[4]      The Act is the Petroleum and Gas (Production and Safety) Act 2004.

[5]The respondent Elizabeth Marie Vogt (Samad) has informed the Court, through her solicitors, that she will abide by the order of the Court and has not filed any material or appeared at the hearing.

[6]The respondent Eugenehans Peter Vogt is in Switzerland. He has been made aware of the hearing but has not appeared or provided any material which contradicts the material provided on behalf of the applicants.

[7]The Court has been left to determine this matter on the basis of the uncontradicted material from the applicants.

The history of the matter

[8]The applicants commenced this action in the Court on 3 July 2014. It was in abeyance for some time due to the illness of Mr Vogt and was heard on 21 February 2017.

The applicable legislation

[9]The Mineral and Energy Resources (Common Provisions) Act 2014 commenced on 27 September 2016 and would be applicable to this matter if it had commenced after that date. Section 228 of that Act has the effect of requiring that the matter be continued under the 2004 Act which was in force when proceedings were commenced.

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[10]Section 532 of the Act, the 2004 Act, sets out the general liability of someone in the position of the applicants to compensate someone in the position of the respondents.

[11]      Section 532(4) sets out the categories of compensation. It provides as follows -

(4)In this section-

compensatable effect means all or any of the following—

(a)all or any of the following relating to the eligible claimant’s land—

(i)deprivation of possession of its surface;

(ii)diminution of its value;

(iii)diminution of the use made or that may be made of the land or any improvement on it;

(iv)severance of any part of the land from other parts of the land or from other land that the eligible claimant owns;

(v)any cost, damage or loss arising from the carrying out of activities under the petroleum authority on the land;

(b)accounting, legal or valuation costs the claimant necessarily and reasonably incurs to negotiate or prepare a conduct and compensation agreement, other than the costs of a person facilitating an ADR;

Examples of negotiation— an ADR or conference

(c)consequential damages the eligible claimant incurs because of a matter mentioned in paragraph (a) or (b).

relevant authorised activities means authorised activities for the petroleum authority carried out by the holder or a person authorised by the holder.

[12]Under s 537DB of the Act, the Court may assess the compensation payable to the respondents. It does so under the categories provided in s 532(4). The Court has before it evidence on this aspect in exhibit 6, the report by Taylor Byrne, valuers. It was written by Mr Tito Lando a Certified Practising Valuer and Registered Valuer No 3331. The report was the subject of some clarification and minor correction on 2 March 2017.

[13]This valuation report addresses the categories of compensation set by the Act and is the only evidence on the point which has been put before the Court. It is the evidence of an expert in the field and is uncontradicted.

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[14]Mr Lando reports that the respondents’ freehold property has an area of 337.5 ha and is located approximately 35 km south of Chinchilla. It is gently sloping, heavily timbered forest country. There are no buildings on it and its highest and best use is as a rural homesite. The infrastructure installed on the land relating to the compensation issue comprises 6 wells, access track and gathering and flow lines for what is extracted.

[15]The total area of the infrastructure is 11.4212 ha, which is less than 3.4% of the total area of the property.

[16]Mr Lando inspected the property on 21 October 2016. He valued the impact on the land, taking into account the categories of compensation provided by the Act, as

$30,000.

[17]Mr Lando notes that the unimproved value of the land as at 30 June 2016 is $126,000. This is set by the Valuer-General and is used for the purposes of local authority rating and land tax. He has not accepted this for present purposes but has considered 6 sales of comparable properties and deduced from those sales that the correct value of the respondents’ property is $225,000. The method employed is appropriate and the conclusion reached is in favour of the respondents as it values the land much more highly than does the Valuer-General. The result will be to increase the compensation due to the respondents as the detriment to their land is a detriment to a more valuable property.

[18]The valuer notes that tree clearing restrictions will apply to 305 ha, which is about 90%, of the total land area. It is heavily timbered with ironbark, bulloak, cypress pine, gum and wattle. There are three small earth formed dams in the south corner of the land, which is only partly fenced.

[19]A before and after approach to valuation has been used by the valuer to arrive at an assessment of the adverse impact of the infrastructure on the land. The “before” value was arrived at by means of a direct comparison with six sales of properties which Mr Lando believes to be suitable for comparison. The method applied is a recognised one and is commonly applied by valuers. The choice of sales is a matter within the expertise of the valuer and there is no competing sales evidence suggested to the Court as being useful for present purposes.  There is no basis upon which the Court could

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do other than accept the method and sales used to support the “before” unimproved value of the respondents’ land at $225,000.

[20]      The gas infrastructure comprises –

·            6 wells covering a total of 5.9883 ha;

·            2.0038 ha of access tracks;

·            3.4291 ha of gathering systems, such as buried pipes.

[21]Each well site is about 100 x 100 metres, which is 1 ha.  It is covered with gravel. The access tracks are around 10 m wide, partly covered with gravel. The pipes of the gathering systems will be buried and the ground above them rehabilitated. The valuer has allowed for monitoring and maintenance of the infrastructure while it is operational, and for its decommissioning and for rehabilitation of the land.

[22]The overall area of the infrastructure is 11.4212 ha, which is about 3.4% of the total area of the land.

[23]The loss of use of the occupied land, restrictions on the use of the remaining land due, for instance, to the buried pipes, the visual impacts and co-usage of the land by the applicants have all been considered by the valuer under the categories of compensation provided in the Act.

[24]The valuer has made assumptions in favour of the respondents. The area of the gas wells has been valued as if lost in perpetuity, attracting a 100% loss in value of the land. The pipelines are assessed as a detriment of 50% to the value of the land which they occupy. The access tracks are assessed as a 100% loss as they may be disruptive to the property.

[25]The most suitable house site is about 700 m from the nearest well, which is screened by the heavy vegetation. The house site is near to the dams. There are two gas wells about 400 m away on an adjoining property. They are also screened by heavy vegetation.

[26]The valuer has allowed for a 10% diminution of the value of the balance area. He has applied this figure as he is of the view that between 5% and 10% would be fair and reasonable, again applying the figure most favourable to the respondents.

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[27]The valuation has been arrived at by the piecemeal approach, a valid method,1 and is as follows:

Wells

5.9883 ha each @ $667/ha @100% depreciation

$3,994

Access Tracks

2.0038 hectares overall @ $667/ha @ 100% depreciation

$1,337

Gathering Systems

3.4291 ha @ $667/ha @ 50% depreciation

$1,144

Impact to Balance Land

326.0788 ha @ $667/ha @ 10% depreciation

$21,749

Total

$28,224

ADOPT OVERALL

$30,000

[28]The valuer has not made an allowance for disturbance as he has not been provided with details of the actual impact on the respondents during the construction of the infrastructure. The Court has not been provided with a valuer’s estimate in relation to this but is under a duty to assess compensation which includes, under s 532(4)(a)(v) damage from carrying out activities on the land. What has been done is known and there was necessarily a construction phase during which there would have been workers and machinery on the land, noise and dust. The respondents may not have been on the land at that time but were entitled to be there if they chose. It would be appropriate to award compensation for this disturbance. The Court is an expert Court and must do its best to ensure proper compensation. The length of the construction period is not known with certainty but would have been significant in order to do all the things that were done. Doing the best that it can, the Court assesses $5,000 compensation in respect of this disturbance in what would otherwise be a quiet rural area.

1            Birla Mt Gordon Pty Ltd v Calton Hills Pty Ltd [2015] QLC 2 [11].

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[29]The Court accepts the expert valuation evidence and has done its best to fill in the acknowledged gap in that evidence.

Determination of compensation liability

[30]In accordance with s 532 and s 537B of the Act, the Court determines compensation liability in the sum of $35,000.

The application for the Court to impose conditions on the parties

[31]The Act contemplates that there will be a conduct and compensation agreement between the parties. The Court has been required to determine the compensation and is also being requested to, in effect, impose on the parties conditions to govern their future interactions.   Section 537DC of the Act allows the Court to do this. By s 537DC(1)(a), it may “impose any condition it considers appropriate for the exercise of the parties’ rights”. By s 537DC(b), the imposed condition is taken to be “an agreement between the parties”.

[32]The applicants propose to enter and re-enter the land as needed from time to time for maintenance of the infrastructure, and for its decommissioning and the rehabilitation of the land. They propose that the Court order be in the form of the standard conduct and compensation agreement which was developed by the Queensland Government in consultation with landholder groups and representatives of resource explorers and producers. It is submitted that the conditions would contribute to the safety of the respondents by allowing access to maintain the infrastructure.

[33]It is persuasive that the standard agreement be used so as to provide consistency between this case and an accepted standard. There are no submissions that the standard agreement ought to be departed from in this case. The Court accepts that there is a need to have a system of rules to regulate the future conduct of the parties in respect of this matter and that the standard agreement is suitable for the purpose in the present case.

[34]In accordance with s 537DC of the Act, the Court imposes the conditions as set out in the Court’s Order as it considers them appropriate for the exercise of the parties’ rights. By s 537DC(3)(b) the imposed conditions are taken to be an agreement between the parties.

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Orders:


1.The applicants’ compensation liability to the respondents under s 537B of the Petroleum and Gas (Production and Safety) Act 2004 (Qld) is $35,000 (compensation amount).

2.The applicants shall pay the compensation amount to the bank account nominated by the respondents (such account to be specified in a written communication to the applicants signed by the respondents), the applicants to make such payment by way of electronic funds transfer within 28 days of receipt of the written communication.

3.The applicants will not be liable to pay any interest upon the compensation amount under statute or otherwise unless they fail to comply with paragraph 2 above.

4.Pursuant to s 537DB and s 537DC of the Petroleum and Gas (Production and Safety) Act 2004 (Qld), the terms of the conduct and compensation agreement attached hereto and marked “A” are imposed as conditions between the parties.

WA ISDALE MEMBER OF THE LAND COURT

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and   r    C  n   uct a · Compensatio    greement

IMPORTANT NOTE:

EACHPARTY SHOULD SEEK INDEPENDENT LEGAL ADVICE BEFORE SIGNING ANY AGREEMENT

This document has been developed by the Queensland Government in consultation with landholder groups and groups representing resources explorers and producers.  It is intended to represent a fair and balanced approach as between those parties to land access and compensation issues.

Parties undertaking negotiations may use this as their conduct  and  compensation  agreement. Alternatively, clauses contained in this document can be modified to meet the specific needs of the parties. In either case any required schedules and annexures should be attached.

To access the document in Word format visit: http:llwww.dme.qld.qov.au/mines!land   owner  occupier   information.cfm

The right is reserved to amend this document to improve quality of content where necessary and ensure it addresses all relevant issues .  Version:  27 August   2010

Item 1

-- ----------

Agreement Date

··-------·····--··-···-----·····-·-·-·······-·---·-----------------

Item 2 Landholder

Item 3

Tenement Holder

Landholder(s)               Eugenehans Peter Vogt and Elizabeth Marie Vogt (Samad)

----------··-····-··         ··-·-·-·---·--------·-------------·----··           ·····------·----·----····-···-·····---·-················-·--··--··------····-··········--------··--··-······---·-------····-······--------··-··-----------------······-··-···-------······

Address : Eugenehans Peter Vogt - Eibenweg 6, CH-5304, Endingen, Switzerland

- --   ------------ -   !i -   !--   ! Y.C>!-=-- 9!_          ()!!_C>r1"l!F.3 cj. _!? -   r1"l_ -   -f_-       -   ?- :??     -

Postal address: As above

Telephone: Eugenehans Peter Vogt - 0011 41 79 830 10 & 0011 41 79 830 38

38

Elizabeth Marie Vogt - (02) 4998 1625

Email: Eugenehans  Peter  Vogt  - eugene [email protected]  &  [email protected] Elizabeth       Marie     Vogt  Elizabeth .samad@nethertek .net

········-- -   --i- g -?@x- C>C>: C>.rl"l :   --

Tenement  Holder(s)     QGC  Ply  Limited,  BG International  Limited, Australia  Pacific LNG

!::'.!t _ !'!1!!9._C2Q_9_9 _   Cl_L? -rl"l g'.'1_s()rJ"lE'.'1r1X   ty_    tcj   r1c1 IC>Y.().Q.'.3?. _9 -t\j ty__ !cj

Postal address : As above

Facsimile: 3024 8999

(07)

Item 4

Land

Item 5 Relevant Act

Item 6 Tenement

Item 7 Activities

Item 8

Use of the Land by the Landholder

Lot: 1  Plan: RP190982

Parish: Montrose  Title Ref: 16751003

With respect to the definition of "Tenement", means the Petroleum and Gas (Production and Safety) Act 2004 (Qld), but otherwise means the Mineral and Energy Resources (Common Provisions) Act 2014 (Qld).

Petroleum Lease 278 and includes all subdividisions , renewals, variations, modifications, conversions, substitutions or replacements of that petroleum authority and any petroleum authorities granted out of that petroleum authority .

See schedule 1

See schedule 2

Item 9

This agreement includes a waiver of entry notice under the Relevant Act.

Waiver of Entry Notice

.................................    ..........................................................................

IZI  Yes

D No .............TE:lrfl1?!..11VC1!\/E:lr....?!..E:ln..t.ry...n..c:>.t.ic,.E:l...:........_

Item 10

Tenement  Holder's public liability insurance

Item 11

Insurance company: JLT Speciality Limited Policy No: B0901BM1610113000 f'.r:0.?.. .n.t...?!..P.. .lic,...liC1. ili!Y...in.. .rcin.c,E:J.: ?Q...9QQ,Q.99 ......

Name: Sue-Ern Tan

Responsible Person -

Tenement Holder

..f::.c:J.c:J.r.E:l.   .?.:...CJ:

gq·q···· !yi.fl1.i!E:l.c:J.•.... .E:l\/E:Jl}Q.•. ??5-...9E:l?EE:l...?tr.E:JE:Jt •.... ..r.i.?. .Cl.n..E:l.... QLD ..40Q9          i

'

Facsimile :  (07)  3024

8999

;

.§fl1C1i):_   - E:l-_E:lr.n.:[email protected]

Item 12

Responsible Person -

Landholder

Name: Eugenehans Peter Vogt and Elizabeth Marie Vogt (Samad)

Address : As per Item 2 above  I

 
................................................................................................................................................................................................................................................................................................     .......................-..................................................................                   ,

Telephone: As per Item 2 above              Mobile:  As  per  Item  2     Facsimile: As  per Item

above  2 above

Email: As per Item 2 above

'

Item 13 Term

From the Agreement Date until the earlier of:  I

(a)the expiry of the term of the Tenement; or

_ (_ )_lE:J_ CO_f'!l_p_!_E:lt!_9!1_ _c:>!!E:J_.Actiyi iE:J?.:..................           _ _ _ ·····················- -·····-····      __           _     ---·----  - - -- - ···------ --- - .

Signing

.........•...•..................•..•••......

-

 
Landholder(s) - Eugenehans Peter Vogt

..................................................................................     .........     ..............     ................................................................................................... ......................................................................................

Witness

(Samad)

 
........ ......   Landholder(s)   - Elizabeth   Marie   Vogt

Witness

··········· ············· ·····························-······

QGC Pty Limited signs this Agreement as attorney for and on behalf of the Tenement) Holder.  )

)

EXECUTED by  )

as attorney for QGC PTY LIMITED        ) ABN 11 089 642 553 under power of attorney) number  )

dated  )

in the presence of:  )

)

)

........................................................................)

Signature of witness

Name of witness (block letters)

By executing this agreement the attorney states that the attorney has received no notice of revocation of the power of attorney

Genera l  Condition s

GENERAL CONDITIONS  Compensation   Liability   has   the meaning given in the Relevant Act.

1.Interpretation

1.1In this Agreement:

Abandoned means that the Infrastructure concerned remains on the Land without lawful excuse after the Tenement has ended, and the Tenement Holder has  not  removed that Infrastructure within 90 days after the Landholder has given the Tenement Holder notice in writing requiring its removal.

Activities means the activities the Tenement Holder is authorised to carry out under the Tenement.

Additional   Conduct    Conditions are any  additional  conduct conditions agreed by the parties and included in the Special Conditions .

Agreement means this document and includes the Reference Schedule, the General Conditions, any Special Conditions and any schedules and annexures.

Agreement Date means the date in Item 1.

Associates:

(a)    in respect of the Landholder, includes that person's family, employees, agents, contractors and other invitees;

(b)   in respect of the Tenement Holder, includes that person's employees, agents , contractors and other invitees.

Business Day  means  any  day other than a Saturday, Sunday or a public holiday in Brisbane, Queensland .

Claim includes any claim, demand, action, suit or proceeding in respect of any Loss.

Compensatable Effect has the meaning given in the Relevant Act.

Compensation   means compensation to be provided to the Landholder under this Agreement.

Dispute means any  claim,  dispute or difference between the parties that arises out of, relates to or is in connection with this Agreement.

GST Act means the A New Tax System  (Goods  and  Services  Tax) Act 1999 (Cth) and the related imposition Acts of the Commonwealth.

Infrastructure means all works and equipment brought on to the Land, or constructed or installed on or under the Land, by the Tenement Holder.

Item means a numbered item in the Reference Schedule .

Land means the land described in Item 4.

Landholder means the person described in Item 2.

Loss means any cost, damage or loss suffered or incurred by the Landholder arising from the carrying out of Activities under the Tenement on the Land.

Minimum Negotiation Period has the meaning given in the Relevant Act.

Property includes any crops , livestock,  buildings,   structures, plant, equipment,  works,  pipes, bores or other improvements on or under the Land which belong to the Landholder .

Reference Schedule means the Reference Schedule at the beginning of this Agreement.

Relevant Act means the Act described in Item 5.

Responsible Person means the person nominated in Item 11 as the first point of contact for the Tenement Holder or the person nominated in Item 12 as the first point of contact for the Landholder , as applicable .

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Genera l   Condition s

Tenement means the tenement granted under the Relevant Act described in Item 6.

Tenement Holder  means  the person described in Item 3.

Term means the period described in Item 13.

Withholding Tax means the amount withheld from withholding payments described in section 10-5 of schedule 1 of the Taxation Administration Act 1953 (Cth).

1.2In    this    Agreement,    unless    the context otherwise requires :

(a)headings do not affect the meaning or interpretation;

(b)the singular includes the plural and vice versa;

(c)all dollar amounts refer to Australian currency;

(d)a party includes its executors, administrators,  liquidators , successors   and permitted assigns ;

(e)writing includes email and facsimile;

(f)if any expression is defined , other grammatical forms of that expression have corresponding meanings;

(g)if a day on or by which an act is to be done is not a Business Day, the act may be done on the next Business Day; and

(h)a reference to any legislation includes         all       subordinate

(d)any  plan referred to in Item 4 ; and

(e)General Conditions.

2.2 To the extent of any conflict or inconsistency                  between the documents listed in the preceding clause, those documents  shall be interpreted in descending order of precedence          in the order they are listed in the preceding clause .

3.Objectives of Agreement

3.1The objectives of this  Agreement are   so far as is reasonably practicable to:

(a)provide the foundation for a cooperat ive    working relationship         between the Landholder and the Tenement Holder and their respective Associates ;

(b)ensure the safety of the Landholder and its animals and the Tenement Holder and their respective Associates;

(c)use best endeavours to preserve the amenity of the Landholder ;

(d)ensure the Landholder and Tenement         Holder and their respective    Associates  treat each other with courtesy and respect;

(e)find workable solutions, which may  involve reasonable adjustments on the part of both parties to minimise the adverse impact of Activities on  the Land;

legislation made under it and any legislation amending, consolidating or replacing it.

2.Formation of Agreement

(f)

ensure

properly required Act ; and

the     Landholder    is

compensated     as under   the   Relevant

2.1This Agreement comprises:

(a)Reference Schedule;

(b)Special Conditions ;

(c)schedules and any annexures to schedules;

(g)   identify   ways   the   Landholder

and the Tenement Holder can help each other in the spirit of being "good neighbour s".

4 .       Term

4.1     Subject  to  the  Relevant  Act,  this Agreement continues for the Term.

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General  Conditions

4.2If a party terminates this Agreement under the Relevant Act  during the Minimum Negotiation   Period, this Agreement is at an end and neither party has any further    rights or obligations under this   Agreement whether     arising  before    or   after termination .

5.Parties

5.1The Tenement  Holder warrants that it is the holder of the Tenement and where more than one person holds the Tenement that all holders of the Tenement          are parties to this Agreement.          Where                  more than one person holds the Tenement, this Agreement binds them jointly and each of them individually .

5.2The Landholder warrants that it  is the owner and occupier (as defined in the Relevant Act) of the Land. Where more than one person is the Landholder, this Agreement binds them jointly and each of them individually.

5.3A party that is a trustee is  bound both personally and  in its  capacity as a trustee .

5.4A party may perform its obligations and exercise its rights under this agreement by its Associates and must ensure that those persons comply with this Agreement.

6.Waiver of Entry Notice

6.1If Item 9 states that this Agreement includes  a  waiver  of  entry  notice · then :

(a)    this Agreement includes a waiver of entry notice for the purposes of the Relevant Act;

(b)   the Landholder acknowledges that the Tenement Holder has told it that the Landholder is not required to agree to the waiver of entry notice ;

(c)    section          in     schedule specifies  the                   Activities proposed to  be carried  out  on the Land for the purpose of the waiver of entry notice;

(d)the period during which  the Land will be entered for the purpose of the waiver of entry notice is the period stated in Item 9 and if none is stated then the Term;

(e)section           in    schedule specifies  when  and where  the Activities  are  proposed  to  be carried  out  for  the  purpose  of the waiver of entry notice ; and

(f)the Tenement Holder is not required to give an entry notice to the Landholder before entering the Land to carry out Activities described in section 1 in schedule 1.

7.Disclosures

7.1The Tenement Holder:

(a)acknowledges that the Landholder                has necessarily been      dependent on the information provided to it by the Tenement  Holder about proposed Activities on the Land when            negotiating this Agreement ;

(b)in section 1 in schedule 1 provides the list of Activities, including location, the proposed work program and timing proposed to be carried out on the Land;

(c)has provided a general outline of the Tenement Holder's overall project, or with the Landholder's consent has provided the website where the information can be accessed, in section 2 in schedule 1; and

(d)has disclosed any other matters of importance to the Tenement Holder in section 3 in schedule 1.

7.2The Landholder :

(a) acknowledges that the Tenement Holder has provided the information in schedule 1;

(b)    agrees that the Landholder understands the general nature and   scope   of   the   Activities

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General  Conditions

described in section schedule 1; and

inLandholder     in   section    3   in schedule 2.

(c)consents

described schedule 1.

to     the     Activities in     section   1          in

7.6The Tenement Holder:

(a)    acknowledges         that        the Landholder   has   provided   the

7.3 If the Tenement Holder materially changes the Activities described in section 1 in schedule 1 at any time after  the Agreement Date in compliance with the Relevant  Act, the Tenement Holder must notify the Landholder in writing as soon as practicable.   That notice must specify the changes made to the Activities described in section 1 in schedule 1.

7.4The Landholder may give the Tenement               Holder a notice that specifies        how                the Landholder considers that change will alter the Compensatable           Effect of the changed                 Activities and the Tenement Holder's Compensation Liability.           The Landholder and the Tenement  Holder will then use reasonable endeavours to:

(a)negotiate, where possib)e, a solution that minimises as  far as possible the impact of changed Activities; and

(b)agree any change to the Compensation,  having  regard to any compromise negotiated under paragraph (a).

7.5The Landholder :

(a)   acknowledges that  the Tenement      Holder has necessarily been dependent on the information provided to it by the            Landholder about the current use of the Land and the Landholder's proposed use of the Land during the Term when negotiating this Agreement;

(b)    has specified the current use of the    Land in section 1 in schedule 2;

(c)    has provided the proposed use for the Land during the Term in section 2 in schedule 2; and

(d)    has disclosed any  other matters  of  importance  to  the

information in schedule 2;

(b)acknowledges  the  importance of the matters disclosed in schedule 2 to the Landholder; and

(c)agrees that it understands the general nature and scope  of the activities undertaken on the Land by the Landholder.

7.7If the Landholder materially changes the current or proposed use of  the Land        at any time after the Agreement Date, the Landholder must notify the Tenement Holder in writing as soon as practicable. That notice must:

(a)specify the change made to the current or proposed use of the Land;

(b)provide sufficient details of the likely impact of the change to enable the Tenement Holder to identify whether the  change may impact on the conduct of Activities on the Land; and

(c)provide updated information about the current or proposed use of the Land.

7.8If the Tenement Holder acting reasonably considers the change notified under the preceding clause will impact on the conduct of Activities  on  the  Land,  it  may give the    Landholder  a notice that specifies how the Tenement Holder considers that change will impact on the conduct of  Activities  on  the Land.    The  Tenement  Holder  and the      Landholder  will then use reasonable endeavours to:

(a)    negotiate, where possible, a solution that minimises as  far as possible the impact on the conduct of Activities on the Land; and

9

Genera l  Condition s

(b)agree any change to the Compensation payable to the Landholder, having regard to any       compromise negotiated under paragraph (a).

However, the Landholder is not entitled to  additional  compensation or to a change to the Compensation only because the Landholder changes the current  or  proposed use of the Land.

8.      Access

8.1 The Tenement Holder and its Associates will be entitled to access to and from the Land in accordance with  this Agreement and in compliance with the Relevant Act.

9.Infrastructure

9.1Subject to this clause and schedule 3, the Infrastructure will remain the property of the Tenement Holder irrespective       of whether the Infrastructure  is permanently attached to the Land.

9.2The Tenement  Holder  must maintain the Infrastructure in a safe condition .

9.3The Landholder may at its risk remove Abandoned Infrastructure from the Land and dispose of it, and the Tenement Holder must reimburse the Landholder for  the reasonable and necessary cost of doing so and of the Landholder's time.

9.4Unless the parties otherwise agree, improvements           made by the Tenement Holder to existing roads and tracks on or that provide access to the Land do not reduce the Tenement Holder's Compensation Liability under the Relevant Act.

9.5At the end of the Term, if the Landholder requests that it do  so, the Tenement Holder will leave for the Landholder's use the roads and tracks  that it improved or constructed, unless the Tenement Holder is required by the Relevant Act or any other law or by the terms of the Tenement or any other relevant   approvals   to   remove   or

rehabilitate  the  areas  of  the  roads and tracks .

10.Additional Conduct Conditions

10.1The Tenement Holder and the Landholder must comply with any Additional Conduct Conditions .

11.Parties' obligations

11.1When the Tenement Holder or its Associates are carrying out Activities described in section 1 in schedule 1, each of the Tenement Holder and the Landholder must comply with this Agreement.

11.2The Landholder must not, and must ensure that its Associates do not interfere with or cause or permit to be interfered with :

(a)the Activities described in section 1 in schedule 1; or

(b)the Tenement Holder's rights to access the Land and carry out the Activities described in section 1 in schedule 1,

except     as     permitted     by     this Agreement or the Relevant Act.

12.Compensation

12.1The Tenement Holder must provide the   Compensation to the Landholder   in accordance with schedule 3.

12.2If the Tenement Holder does  not pay a sum of money under this Agreement at or before the time for payment, the Tenement Holder must pay the Landholder interest at the standard default contract  rate published by the Queensland Law Society at the time payment was due.

13.Scope of Agreement with respect to Compensation

13.1This Agreement is in full and final satisfaction of the Tenement Holder's Compensation Liability to the Landholder under the Relevant Act for the Compensatable Effects of the Activities described in section 1 in schedule 1 during the Term.

10

General  Condition s

13.2Subject to any provision of this Agreement that expressly provides for the Tenement Holder to make payments or pay or provide Compensation  to  the  Landholder, the Landholder:

(a)releases the Tenement Holder from any further liability under the Relevant Act in respect of compensation for the Activities described in section 1 in schedule 1; and

(b)acknowledges that this Agreement may be pleaded in bar against all claims and entitlements for those matters for which Compensation has been paid or is to be  paid under this Agreement.

14.Indemnity

14.1The Tenement Holder indemnifies and     will keep indemnified the Landholder from and against any Claim on the terms of this clause 14, except to the extent the Claim:

(a)is settled by Compensation or other  payments   contemplated in this Agreement; or

(b)   is caused or contributed to by the     negligence or act or omission of the Landholder  or its Associates.

14.2If, as a result of Activities described in section 1 in schedule 1 the Landholder considers, acting reasonably , that it has suffered Loss over and above that for which the parties have already agreed Compensation or other payments elsewhere in this Agreement , the Landholder may give the Tenement Holder notice of a Claim specifying :

(a)   the extent of the Loss over and above that for which the parties have    already agreed Compensation     or other payments elsewhere in this Agreement ;

(b) how that Loss resulted from Activities described in section 1 in schedule 1; and

(c)whether the Loss involves damage to Property that is capable of repair and, if so, the manner in which and  the  time by which the Landholder acting reasonably requests the repair be made.

14.3The Landholder must  take reasonable steps to mitigate its Loss.

14.4The Tenement Holder must take reasonable steps to minimise any impact and Loss to the  Landholder in relation to any Claim.

14.5Where clause 14.2(c) applies, the Tenement       Holder must at the election of the Landholder acting reasonably do all or any of these things:

(a)repair the damage to the Property     to the reasonable satisfaction of the Landholder;

(b)replace the Property;

(c)reimburse the Landholder  for the Loss.

14.6If the Tenement Holder does not repair the damage to the Property within the time reasonably  required by the Landholder :

(a)the Landholder may carry out the repairs; and

(b)   the Tenement Holder will reimburse the Landholder  for the reasonable and necessary cost of repairs to the Property and the Landholder's time.

15.Further Claims by the Landholder

15.1This Agreement does not  prevent the      Landholder from bringing a Claim after the Agreement Date in respect of activities conducted  by the Tenement Holder that:

(a) are not part of the Activities described in section 1 in schedule 1; or

(b)   are not otherwise contemplated by this Agreement.

11

General  Conditions

15.2The Landholder must take reasonable steps to mitigate  its Loss associated with any such Claim.

16.Rehabilitation

16.1The Landholder acknowledges that the Tenement Holder must when rehabilitating any part of the Land affected by the Activities described in section 1 in schedule 1 comply with the environmental authority for the Tenement and any Additional Conduct Conditions relating to rehabilitation.

16.2The Tenement Holder must consult the Landholder about the rehabilitation of the Land and have reasonable regard to the Landholder's proposals relating to rehabilitation.

17.Insurance

17.1The Tenement Holder must effect and maintain public liability insurance in respect of the Activities described in section 1 in schedule 1 for the amount specified in Item 10 for the Term. If requested by the Landholder, the Tenement Holder must provide the Landholder with evidence of the insurance.

18.Dispute Resolution

18.1All Disputes under this Agreement must be resolved in accordance with this clause.

18.2The Responsible Person for the Landholder may give notice to the Responsible     Person for the Tenement Holder that a Dispute exists, describing the Dispute.

18.3The Responsible Person for the Tenement Holder may give notice to the   Responsible Person for the Landholder that a Dispute exists, describing the Dispute.

18.4The Responsible Person for the Landholder and the Responsible Person for the  Tenement  Holder must     in the first instance use reasonable endeavours  to  resolve the Dispute.

18.5The parties may appoint a mutually agreed mediator to mediate the Dispute in accordance with the Australian Institute of Arbitrators and Mediators Mediation Rules, and in the absence of agreement either party may apply to the Queensland president of the  Australian  Institute of Arbitrators and Mediators for the appointment of a mediator.

18.6If the Dispute is not resolved within 20 Business Days, either party may seek to resolve the Dispute in a court of competent jurisdiction .

19.Assignment

19.1The parties acknowledge that under the Relevant Act this Agreement will be binding on:

(a)any transferee of the Land; and

(b)any transferee of an interest in the Tenement.

19.2If the Landholder transfers the Land or any interest in it, the Landholder must notify the Tenement Holder of the transfer and the name and address of the transferee within 10 Business Days of the transfer date.

19.3If the Tenement Holder transfers the Tenement or any interest in it, the Tenement Holder must notify the Landholder of the transfer and the name and address of the transferee within 10 Business Days of the transfer date.

20.Confidentiality

20.1Neither party may disclose the Compensation to another person without the other party's prior written consent, which consent must not be unreasonably withheld.

20.2Notwithstanding the preceding clause, a party may make the following     disclosures without the consent of the other party:

(a)    to the  party's legal or financial advisers;

(b)     to the party's other consultants;

12

General  Conditions

(c)to a potential purchaser of the Land or an interest in the Tenement ;

(d)to a related body corporate, as defined in section 50 of the Corporations Act  2001 (Cth);

(e)required by law, including disclosure          to any stock exchange; and

(f)as ordered or required by any court, tribunal or authority .

Disclosures made with the  consent of the other party or under paragraphs (b), (c) or (d) may only be made if the person to whom the disclosure is to be made agrees in writing to keep the subject matter of the disclosure confidential.

21.Notices

21.1A notice under this Agreement must be in writing and must be sent by prepaid post, fax or delivered by hand to the Responsible Person for the Landholder or the Responsible Person for the Tenement Holder.

21.2A notice will be deemed to be given (in the absence of reasonable proof to the contrary):

(a)if posted - when in the ordinary course of the post it would be delivered;

(b)if faxed - on the date the sender's  facsimile machine notes a complete and successful transmission;

(c)if delivered by hand - on the date of delivery.

21.3Notices given on a day that is not a Business Day,  or  after 5 pm  on a Business Day, will be treated  as having been given on the next Business Day.

22.GST

22.1Terms used in this clause that are defined in the GST Act have the meaning given in that Act.

22.2If GST is imposed in relation to any supply under this Agreement by one party to another, the party receiving the supply (Recipient) must pay the amount      imposed to the party providing the supply (Supplier)  at the same time as the party is required to pay the Supplier for the supply, provided :

(a)the Supplier gives a valid tax invoice to the Recipient at or before the payment of GST is made by the Recipient (and the Recipient is not required  to make any payment  for  GST until the Recipient has received a valid tax invoice); and

(b)this clause does not apply if the consideration payable or to be provided by the Recipient for the supply includes GST.

23.Withholding Tax

23.11 If the  Tenement  Holder  is  required to withhold an amount in respect of Withholding Tax from a   payment made to the Landholder  under  this Agreement ,  the   Tenement Holder may withhold the  Withholding Tax from the payment and pay the same to the taxing   authority  and   such payment will be a good discharge of the Tenement  Holder's  obligation  to the Landholder.

24.Miscellaneous

24.1This Agreement is governed by the law of Queensland and each party irrevocably submits to the exclusive jurisdiction of the courts  of  that State.

24.2This Agreement constitutes  the entire      agreement between the Landholder          and the Tenement Holder in relation to its subject matter.

24.33  Neither   party   may  terminate   this Agreement  for  a   breach   of   this Agreement by the other  party,  but all other remedies are available  to a party in respect of a  breach of  this Agreement by the other party.

24.4This Agreement may only be amended by the written  agreement of the parties .

13

Genera l   Conditions

24.55   Any failure by a party at any time to enforce a clause of this Agreement , or  any               forbearance,     delay or indulgence granted by a party to the other will not constitute  a waiver  of the party's rights.

24.6No provision of this Agreement will be deemed to be waived unless that waiver is in writing and  signed  by the waiving party.

24.77   If any provision of this Agreement is determined to be invalid, unlawful or unenforceable for any reason then:

(a)that part  will, to the extent  of the invalidity, unlawfulness or unenforceability, be severed from the rest of this Agreement; and

(b)the remaining terms will continue     to be valid and enforceable to the fullest extent permitted by law.

14

Specia l  Condition s

Special Conditions

1.Landholder's Use of Land

1.11     The  Landholder will comply  with all safety directions of the  Tenement Holder as notified from time to time .

2.Tenement Holder's Entry to Land

2.11     The  Tenement   Holder  will  provide the      Landholder  with 48    hours' notice of entry by phone or email.

2.2The Tenement Holder will enter the Land at existing access points or, subject to section 13(2) of the Land Access     Code                   published by the Department of Natural Resources and Mines (Version 2, 2016), at such other locations as the Tenement     Holder considers appropriate .

3.       Insurance

3.1The Tenement Holder may  change insurer and/or  agree     new  or amended        terms                   of      insurance provided, however,  the  amount of public   liability  insurance    is not below the amount of public  liability insurance  specified  in  Item 1O of the Reference Schedule .

(c)drill, dig , plough, rip, penetrate,    excavate or otherwise remove  or  alter any part of the  Land  on which the Infrastructure is located, or any part of the Land         above, below or surrounding                 the

Infrastructure;

(d)construct, build, install  or erect any building, pit, well , bore, dam, foundation , roadway, pavement, pipeline, fence,       cable  or other structure or  installation  on any part of the  Land  on which the Infrastructure is located, or  above,  below  or in the area surrounding such Infrastructure; or

(e)plant any tree or install any fence posts within 3  metres of any Infrastructure.

5.2If the Tenement Holder provides consent to the Landholder under special condition 4.1 in respect of a particular activity, the Landholder must also contact and obtain the approval of "Dial Before You Dig" before carrying out that activity.

4.      Dispute Resolution  6.      Recording on Title

4 . 1 A party is not obliged to follow the dispute resolution process set out in General Condition 18 above if it wishes to seek urgent relief from a court of competent jurisdiction .

5.      Safety

5.1   The Landholder and its Associates must not, without the prior  written consent of the Tenement Holder (which must not be unreasonably withheld) :

(a)interfere  with  the Infrastructure in any way;

(b)do anything which, in the Tenement                 Holder's reasonable      opinion, could affect or jeopa rdise the safety or     operation of the Infrastructure;

6.1    Under s.92 of the Relevant Act, the Tenement Holder  is  required  to give notice of this Agreement to the registrar under the Land Title Act 1994 (Old) or the chief executive under the Land Act 1994 (Old), as applicable, and the registrar or the chief executive is required to record the Agreement in the freehold land register    or the registry under section 275 of the Land  Act 1994 (Old) .

6.2    Each party will do all things necessary,         including by signing such notices or documents as may be required , to have this Agreement                  recorded on the relevant register and to give effect to that registration.

15

Sc hedule 1: Tenement Holder's disc losure

1.The Tenement Holder intends to carry out the following Activities on the Land under this Agreement at the locations shown on the map at Schedule 4 of this Agreement:

(a)the construction of six (6) well pads;

(b)the drilling, production testing, operation and maintenance of six (6) coal seam methane production wells (Wells);

(c)the  construction,  operation  and  maintenance  of above  and  below ground gathering  systems,  including  pipelines,  for  the transport  of gas, its by-products and water from  the Wells  (Gathering) ;

(d)laying down or storing pipeline , other infrastructure, equipment (or parts thereof) or earthworks pending construction of the Wells, Gathering, other infrastructure or equipment;

(e)the construction , operat ion and maintenance of access tracks to the Wells and other Infrastructure or equipment ;

(f)monitoring of the Wells and Gathering and maintenance activities as required, including without limitation well workovers;

(g)decommissioning of the Infrastructure, including plugging and abandoning the Wells in accordance with the Relevant Act, the Petroleum and Gas (Production and Safety) Act 2004 (Old) and any other laws;

(h)rehabilitation of those parts of the Land affected by the Activities in

accordance with the requirements of the Relevant Act, the Petroleum and Gas (Production and Safety) Act 2004 (Old) , Environmental Protection Act 1994 (Old), associated environmental legislation and the relevant OCLNG state and federal environmental approvals;

(i)the construction, operation and maintenance of any ancillary equipment , fittings and structures as may be necessary, useful or convenient in connection with or incidental to the construction , operation and maintenance of any Infrastructure or equipment ;

(j)activities which are incidental to or associated with any of the above­ mentioned activities.

Further details of how the Activities are to be carried out are set out in the Notices of Intention to Negotiate dated 4 December 2013 at Schedule 5 of this Agreement. To the extent of any inconsistency between these Schedule and those Notices of Intention to Negotiate, this Schedule prevails.

2.General outline of the Tenement Holder's overall project or, if the Landholder agrees, a website where this information may be obtained:

Details of the Tenement Holder's overall project can be found on the website : www .qqc.com. au

3.Other matters of particular importance to the Tenement Holder: not applicable .

16

Sched ule 2: Landholder's disclosure

1.Current use of Land.

2.Proposed work program for the Land during the Term .

3.Other matters of particular importance to the Landholder .

Schedule 3: Compensation

····················-···-·····--····-·····-·-····--·········-····-···--··--······-·········-·-

Subject to this Agreement and for the purposes of s.83(1)(c) of the Relevant Act, the Tenement Holder must pay monetary compensation to the Landholder in the amount of $35,000 .

The Tenement Holder will pay the above-mentioned compensation amount to the bank account nominated by the Landholder (such account to be specified in a written communication to the Tenement Holder signed by each person comprising the Landholder), the Tenement Holder to make such payment by way of electronic funds transfer within 28 days of receipt of the written communication.

This compensation is for all of the Tenement Holder's Compensation Liability to the Landholder.

17

Schedule 4: Map          

1RP190982

As Built Disturbance

O     Existing Well loca!ion

Infrastructure Disturbance Type

Acc e ss Tracks

· Gathering

-WellsJWeM Pads

Surveyed Property Boundary

c:::J QGC Field

•·

•.

r..

Schedule 5: Notices of Intention to Negot_ iate               -----·-------

' " i•"

19  3472-1036-0323v5

Queensland

Govern ment

Department of Em ployment, Economic Development a nd fnno vntion

Mlnes

l'Mw.deedi.ql d.gov.au AB N  24 BJO 236 406

Notice of intention to negotiate an agreement

Form Number MINES-02 Version Number 2

This noUce Is used to notify a landowner or occupier that entry onto private land Is sough! and to commence negoliation to prepare a Conduct and

Compensation or Deferral Agreemenl for advanced authorised ac!Jvltles. Section 163 oflhe Mineral Resources Act 1989, secUon 249 of the Geothermal Energy

Act 2010, secUon 323 of the Greenhouse Gas Storage Act 2009, section 79 of the Petroleum Act 1923 and section 535 of the Petroleum and Gas (Producilan and Safety) Act 2004 requires the holder of an exploration tenement, petroleum authority, GrEHinhouse Gas authority and geothennal tenure to give owners and

occupiers of land a notice that they wish to negotiate a conduct and compensation agreement or deferral agreement.

Tenure Del.airs:

Registered horders of the tenure:

Landowner or Occupier Detalls:

PL 278

QGC Ply Limited ACN 089 642 553

BG fntemationar Limited ARBN 114 818 825

Australia Pacific LNG Pty Limited ACN 001 646 331

CNOOC Coal Seam Gas Company Pty Ltd ACN 142 591 179

Tokyo Gas QCLNG Ply Ltd ACN 147 864 319

For further details regarding this n<1tlce, please conlact the local tenure

contact via the details provided below, or vour l ocal mlnfn!I reidslrar. Local Tenure Contact Detalls;

Name:

' Address: Suburb:

EUzabeth Marie Vogt

.2013 Wolrombi Road Sweetmans ·Creek

Name: Company: Address:

Godfrey Tindall QGC Pty Limited

"QGC Kenya Office" Vanrenens Road

p;o.Box 266

•l         State:

New South Wales  Suburb:

ChinchiUa

Post Code:   2325

1a1e:

Phone:

Fax:

QLD

(07) 4660 7518

NIA

Postcode:    4413

Mobile;      0407 614 354

Email:

Godfrey.Tfndall@bq-q roup.com·

Land Parcers proposed to be entered:     Lot 1 on RP190982

Type of Agreementlo be negotiated

Conduct and Compensation Agreement for all of the tenure herder's compensation liability to the owner or occupier of the land.

O

 
Conduct and Compensation Agreement for part of the tenure holder's compensation liability lo the owner or occupier. The part of the liability that the tenure holder wishes to negotiate is:

0        Deferral Agreement . The reason for wishing to negotiate a Deferral Agreement is:

The following documents are attached:

A copy of the Land Access Code is attached

/hi             (Vy/Jg

 
Signature of holder or

authorised person:        Fun Name  V! Signature  Date

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Queensland

Government

Activities proposed to be carried out on the land include:

Oepartmol'\t of E'mploymant,  Economic  Development  ancJ fonovallon

Minas

•wM.deed i,qld.gov.au ABN 24 030 236 406

The Activijies will be undertaken    The Activities will be

a.        the construclion of 7 well pads, the drilling, production testing, operation

and maintenance of 7 coal seam methane production wells (Wells);

b.      the construction, operation and maintenance of above and below ground gathering systems. including pipelines, for the transport of gas. its

by-products and water from the Wells (Gathering);

c.        laying down or storing pipeline, other infrastructure .. equipment (or parts thereof) or earthworks pending construction of the Wells, Gathering, other infrastructure or equipment;

d.        the construction, operation and maintenance of access tracks to:

at a time generally in accordance with the proposed work program described below at items 1lo 13 inclusive.

Following execution of a Conduct and Compensation Agreement, QGC will be in a position to discuss Iha construction schedules for our Activities . In addilion, QGC will contact the Landowner 2 weeks

undertaken at the locations identified on the map(s) attached to this Notice of lntentron to Negotiate.

(A}

(B)

the Wells;and

any infrastructure or equipment described herein;

prior to the commencement date for the Activities to hold a pre­ construction meeting to discuss

e.        decommissioning of the infrastructure, including plugging and abandoning the Well in accordance with the Petrof[!1.1m .and Gas (Production and Safety) Act 2004 (Act);

f.      rehabilitation of those parts of the .land affected by the Activities in accordance with the requirements·of-the Act. Environmental Protection

A;l 1994 (OLd),  assocjatep  environmental legislation and lhe relevant  ·

QCLNG state and federal environmental apprvals;

g.      the construction, OP,eration..and maintenance of.any .ancillary equipment, fittings and structures as rii' y be necessa,y:·useful or convenient in

connection with or incidental to tM l:onstruction, operation and maintenance of any irifrastructute gr equipmenfrefe.rred to herein: and

the timeframes for our work program.

All a.ccess will be. in accordance with the Access Rules agreed .

between th .L.l'lndowner and the Tenement Holder prior tg the .. comrn!)ncement of the.Activities .

.,,.

h.     any other activities described herein that are incidental to dr associated with any Activity.

The final location and extent of the Activtties and at what points the Tenement Holder proposes to enter the Landowne(s property are identified on the

v.:.:.

,,.

attached map.

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I  Queensland

I

Department of (mp!oymcnl, Economic Deve lopment and tnnovation

Mines

Site preparation and pre-construction works

Surveying

The areas for the Activities are surveyed and marked out prior to construction . fencing will be erected where appropr iate to minimise

Clearing and grading is typically The access !racks going ta progressed at a rate of 400      the proposed infrastructure metres per day. depending on       are identified on the

the amount of vegetation that is construction corridor on the required to be cleared, weather     attached map.

impact to, and interaction with, remaining vegetation, livestock and people    ·condilions and resource during clearing and for the duration of construction activities. Appropriate            availability.

signage is erected.

Access tracks

Access tracks are requiredlo allow safe accesslo the site during construction, and for continued access to perform commissioning, operations, maintenance, decommissioning and rehabilitation activities .

Typically a construction corridor for access tracks has a width of 1O metres. All activities relating to the construction of the access track will be confined to _the construefion corridor .

Clearing, grubbing and grading wor'ks

The construction corridor and other areas required for the Activities are Cleared in accordance with the relevant environmental authority.

Typically, activities include slashing and clearing vegetation, removing stumps and olher obstacles and stockpiling the vegetation within the construction corridor . Topsoil will be graded and also stored within the construction corridor. Both stockpiled egetalion and topsoil will be used during rehabilitation works .

An access track is typically

constructed at a rate of 500 metres per day.  This rate of construction is dependent on a number of conditions including site condttions and weather. If earthworks are required, construction may take an additional week to complete.

Where the construction is to take place on a slope, some earlhworks. may

be required to establish a level base.

A gravel surface is lhen applied, graded, ro!led and compacted. Drainage syslems are conslructed to control surface drainage, erosion and runoff.

Typically this involves 1 • 2 bulldozers, 2 graders, 2 - 5 trucks to lranspor1 equipment and personnel, a bucket loader, rolling and compacting machines with up to 6 operators and supervisors .

Once construction has been completed, the vegetation is mulched and spread as part of the rehabilitation of the conslruction corridor .

Mobilisation

Mobilisation involves transporting all construction equipment (including between 1O • 20 heavy vehicles) onto site prior lo commencement of construciion activities.  Delivery trucks and passenger vehicles will access the land using access tracks where applicable and within the construction corridor.

2

Specialisedconstruction equipment will typically include: hydrostalic or pneumatic testing equipment; pipelaying  equipment;

various heavy and light vehicles including 4WDs, gravel trucks. delivery trucks and minibuses:

Mobilisalion of equipment onstte will take approximately 1 to 3 days.

The ACfivities will be conducted using access tracks where applicable and within the construction corridor as shown on the attached map.

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\   ·.  · Government

Department of Employment, Economic Oeveloprnent and fririovation

Mines

IWM.dce<!i.qld.gov .au A!JN 24 83o 23S 4 00

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specialised pipeline equipment, including: o   trenchers;

o   pipelayers;

o    padding machines; o    dozers;

.o    graders;

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0 welding machines; o water spray trucks ; o  fuel trud<s;

oloaders; and

o    high density pqlyeihylene ploughing machines .

The following PiP!lline fabric;ition machinery will be mobilised to site prior to commencement of constructlon activities:

testing and cleaning headers for hydrotesting; and

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utility floats which relocate eqipment along co.nstruction corridors.

a.nd

'Construction equipment is mobilised using access tracks and the .. construction corridor.

Additional temporary equipment may include scaffolding, platfonns, generators , storage facilities, lighting towers, site amenities, site offices, trailers anil other temporary equipmerit as required. This temporary infrastructure wm be removed once,works on the property are complete.

All vehicles and major equipment brought onsrte are subject .to wash down, in_ pection and certification prior to commencement of construction activities: Washdown faciltties are located at designated points on main roads and at operation «e.ntres.

There may be up to 20 •·30 workers onsite to mobilise the equipment.

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Dopt1t1man t of Employm i>n t , Ec onom ic De velopm ent a nd In n ova I/on

Minos

\W1w.deedi.qld .gov,a11 ABN 24 830 236 4 00

Where

Deliveiy and welding of Gathering  Delivery and welding will

The Activtties will be

Gathering

Pipeline and or pipe reels will be loaded onto trucks and transported to

the site and set down along construction corridors.

The pipelines are unloaded and strung along the construction corridor by means of pipeline laying equipment.  The pipeline is typically seciioned into 10 - 20 metre lengths . However, this is dependent on lhe

transportal ion method and diameter of the pipeline. Seciions of pipe are welded together then pressure tested.

Welded and in-line fittings, including isolation valves, high point vents and iow point drains are prefabricated onsite prior to being transported to !he surveyed or designed locations within the construction corridor.    ow point drainage syslems may be installed along the gas Gathering lines to allow

for the safe extraction of excess water. The need to extract water through

3

low point drains will vary depending on the phase of the project .  During

de-watering, water extraction may typically occur every week and is collected by truck. After de-watering , this will typically reduce lo occurring on a monthly basis.

typically progress at a rate of 400 metres per day.  This is conditional upon available resources and weather condilions.

The crew will work on a rolalional rosier system,  7 days a week from 6am to 6pm, or when daylight hours permit.

conducted  using access tracks where applicable and within the construction corridor as shown on the attached  map.

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High point vents may beinstalled along the Gathering system, dependant

upon topography, and allow the safe release of g'as from the water the can gather in high points that Inhibits the free flow of fluids. As the vent

builds up with a slight pressure from gas, small amounts can be released into the atmosphere . Pressure is released from the high point vents through a self releasing valve. Typically this wil'r'occur every 1 to 2 days for a period of up to a couple of seconds, but is subject to well production and pressure.

low point and high point vents remain within the construction corridor.

All works are conducted by qualified personnel using approved procedures.

Installation of Gathering  The constwction and backfilling

The Aciivities will be

Gathering

Installation of Gathering will be completed by trenching and backfilling using machinery such as high density polyethylene ploughing machines, trenchers and excavators.

Trenchers and excavators dig trenches .  The pipeline is laid directly into

the trench. The trench is then backfilled, which involves replacing all excavated materials back in the trench . The topsoil is then re-spread

4

across the fop of the compacted trench. The high density polyethylene

ploughing machine is used wherever soil conditions and topography allow as it is capable of trenching, laying pipe and backfilling simuttaneously as it moves down the line, reducing the need for open trenching.

of trenches will typically progress at a rate of 400 metres per day. This is conditional

upon available resources a11d weather conditions.  If additional earthworks are required, the trenching process may be protracted.

lnslallation will progress at a

rate of 400 metres per day. This is conditional upon available resources and weather conditions.

This crew will work on a rotational roster system, 7 days a week from 6am to 6pm, or when daylight hours permit.

conducted using access tracks where applicable and within the const ruclion corridor as shown on the attached map.

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Queensland

Government

Department of Employment, Economic Development and Innovation

Mines

YNIW.deedi.qld .gov.auN 24 .830 236 406

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Testing of Gathering

Gathering

All Gathering pipeline will be inspected above ground prior to installation.

Gathering will be tested in lengths of several hundred metres where possible.  Each separate test will take

The Activities will be conducted using access tracks Where applicable and within the construciion

This includ.es checking the integrity of th.e Welds and pipeline to ensure        approximately one day.

structural integrity:  Once installed, the pipelines will be tested using hydro or pneumatic testing.

corridor as shown on the attached map.

Construction of well pads

Prior to.drilling a Well a well pad is constructed to provide a hard stand area.  The well pad area is typically 100 metres x 100 metres (1 hectare).

Semi permanent fenci.ng will be erected around the well pad areas to

6      minimise impact to, a.hd interaction with, remaining vegetation , livestock and people during clearing and for the duraiion of construction activities.

Appropriate signage is erecte.d.

·"

Mobilis.alion of rigs

·  ... '··once a     ell  pad h  ?en prepared,   h Construction pr9cess w.il

Construction of the Well pads will take between approximately 1 to 3 days per pad depending on weather and scheduling availability.  If earth.works are required, construction may take an additional week to complete.

For safety reasons, the construction of the well pads will occur during daylight hours.

Mobilisation of the drill rigs and equipment.onto the property will

The Activities will be un(lertaken within the construction corridor for the wet! pad identified on the al,\ached map.

The Activities Will be undertaken within the

commeni:e.  Drilling is carried out in stages by different drill rigs w ich wj ll be transported to the well pad via the access traeks, The main l)lpes of

7drill!ng rigs that are used are the drilling riQ a'nd service rig_

Additional ter:iporary equipment may includ scaffolding, machinery, platforms, generators, storage facilities, lighting towers, site amenilies, site offices and trailers. This temporary infrastructure will be removed when the Well has been completed.

take approximately betwel;ln 1to . . construction corridor

3 days per rig.                   identified on the a.ttached map.

Drilling the Well

'P. notice of intention to drill the Well is gi'ven to the Larydowner in accordance with the Act.

Each section of the Well will be drilled with a different diameter drill head

Th.e total epected duration to mobilise the drill rig, drill each Well, attach above ground infrastructure and demobilise the rig (excluding site

The Activities w.ill b.e undertaken .within the construction corridor for the··' well pad identified on the attached map.

so as the drilling cleepens the drilling dia.me.ter decreases.. The first stage   preparation) is 7 to 12 days, of the drilling process involves an auger rig installing a steel conductor    subject to inclement weather

pipe and casing to a depth of approximately 10 metres and cementing ii in

place.

8

A smaller drilling rig may then be used to drill the top hole section to 60 • 100 metres in depth, and a steel casing will be installed and cemented in place.

The main drilling rig, which is used to drill into the reservoir coal seams , will then move onto the well pad.  Th.e final secti.on of the Well is then drilled to a depth generally between 500 • 850 me.Ires below ground

surface, lo a depth that extends 40 • 90 metrl;ls below the lowest coal

seam .  The main rig may be used lo also drill thelop hole section.

and scheduling availatiility .

The expected duration to setup the auger rig is 1 day.

The expected duration to drill the surface hole is 1 day.

The expected duration to drill the remaining depth is typically

3.5 days.

Drilling occurs 24 hours per day.

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Govern    ent

Opartmcm ot Employm ent, Economic Deveto pmanl and Innova tion

Mines

"'w1.deedi.q ld .gov.a u ABN 24 830 236 400

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n  Where

Well completion

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Completion of each Well can

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The Activities will be

After the Well is drilled and the drilllng rig moves off the well pad, a well service rig will move in to perform the well completion operation and to prepare the Well for production.

The well service rig cleans the coal, silt and sand from the well bore to enable the Well to produce. When the Well is clean, the rig will then

9install subsurface pumping equipment and sensors.  Once the pumping

equipment has been installed, the rig will finalise and secure the wellhead. A wellhead provides a seal and isolates the.underground fluids (gas and water} from the surface. A wellhead is constructed with durable materials and Is designed to withstand very high pressures.

After this process, the Well is ready lo be connected to the Gathering system at which time production will commence.

take up to 7 days.

Once the Well is completed, a notice of completion will be given to the Landowner in accordance with the Act .

undertaken within the · construction corridor for the well pad identified on the attached map.

Installing well site above ground infrastructure  Typically, ilwill take 3 days to

The Activities will be

Once the well service rig has prepared the Well for production and has been demobilised, surface infraslructure can be inslalled.

Either a·two-phase (water/gas) separator skid or a melering skid is installed at each well pad to condition, monitor, and meter the produced water aiid gas before entering into the Gathering systems . The surface production facilities will typically consist of:

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Queensland

Government

Department ot Empfoymenr, Economic Development and fonovaUon

Mines

vN.w.deedi.qld .gov.au ABN 24 BJO 236 41);

h 'ti

Well completion

After the Well ls drilled and the drilling rig moves off the well pad, a well service rig will move in to perform the well completion operation and to prepare the Well for production.

The well service rig cleans the coal, silt and sand from the well bore to enable !he Wei! to produce.  When the We!J is clean, the rig will then

9install subsurface pumping equipment and sensors. Once the pumping

equipment has been installed, the rig will finalise and secure the wellhead. A wellhead provides a seal and isolates the underground fluids (gas and water) from the surface.  A wellhead is constructed with durable materials and is designed lo withstand very high pressures.

Completion of each Well can take up to 7 days.

Once the Well is completed, a notice of completion will be given to the Landowner in accordance with the Act.

The Activities will be undertaken within the construction corridor for the well pad identified on the attached map.

After this process, the Well is ready to be connected to the Gathering system al which time production will commence.

Installing well site above ground infrastructure  Typically, it will lake 3 days to eslablish the well site

The Activities will be undertaken wilhin the

Once the well service rig has prepared the Well for production and has

been demobilised ,surface infrastructure  can be installed.

Either a two-phase (water/gas) separator skid or a metering skid is installed at each well pad lo condition, monitor, and meter the produced waler anil gas before entering into the Gathering systems.  Th surface production facilities will typically consist of:

•,wellhead assembly;

infrastructure, which is conditional upon weather, materials availability and site conditions.

Production testing activities may

iake up to 90 days.

construction corridor for the well pd,identified on the attached map.

 
associated pipe work;      ,,         '

.. valves and fittings;

10

•gas/water  separator;  -

.

 
solids handling tank ; instrumentation; and

•remote telemetry  unit (RTU}.

The RTU allows the well site to be monitored from a central location 24 hours a day. A hydraulic power unit uses gas produced from the Well to power a hydraulic pump that drives the down-hole pump.

Production testing of the Well may then be conducled. This will typically require one person on site to check the well head and production capacity.

Progressive  rehabilitation

Progressive rehabilitat ion following construclion works (including rehabilitation associated with the final decommissioni ng of infrastructure) will be undertaken in accordance with the relevant QCLNG state and federal environmental approvals and associated environmental legislation.

11

Rehabilitation activities include the following:

•     1emoval of surplus material;

•    restoration of services to their originalcondition;

•    disposal of refuse;

Progressive rehabilitalion worl<s will commence upon complet ion of construction works, for a period of up to 14 days .

It is anticipated that rehabilitation of construction corridors will be completed no later than 6 months after the installation of the infrastructure.

Review of the site will be conducted following orociress ive

The Aclivtties will be undertaken within the construction corridor Identified on the attached map.

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Queensland

Government

Dopartmont or   O)ploymont, EconomJ c Devclopme.n and Innovation

Mines

v.ww.deedi.qld .goy.au ABN 24 830 236 406

smoothing of disturbed earth;

remol!al of temporary fills, culverts and bridges; and

I

 
performing such work as may be necessary to leave the area as close to its original ccndilion as possible.

!  Seeding of native grasses or sterile crops m_ay be carried out during I                  progressive reinstatement works to assist in stabilising the area and I                   reducing the potential for weed outbreaks .

I

I

 
Once the well head infrastructure is established, well pads will be

Progressively rehabilitated. At completion of progressive rehabilttation. the W!Jll pad will typ!C911Y occupy an area of approximately 5,000m2 unti_I final decom.missioning is undertaken.

I

 
The progressive rehabilitation of the well pad typically includes the fo.llowing activities :

dewatering, drying and backfilling of drill pits (where used);

removal of surplus hardstand and gravel materia_I;

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partial ripping and spreading of topsoil on cleared areas not required fpr ongoing operation to promote re-vegetation and stabilisation;

·ripping of excess roads a'nd tracks. used during drilling unless otherwise. requested 1Jy1he Landowner ;

removal of excess materiafoff-site';

seeding or promotion o( regeneration of natural vegetation on areas which are not req·uird tor ongoing.operation, to commence the process of returning th  ile to its pre-impact state in accordance with the requirements of applicable environmental conditions; and

re-spreading of cleared, stockpiled vegetation on a;eas where this is practical from an operational perspective to aid natural regeneration of the site .  ..,

Progressive rehabilitation of a well pad typically involves 1 bulldozer, 1 grader, 2 trucks to transport equipment and personnel, a bucket loader and a bobcat. Approximately 2 operators and supervisors will be required.

Once progressive rehabilitation works are complete, the Landowner is invited to inspect the area so that any problems can be resolved.  Review of the site will be conducted following progressive rehabilitation to ensure tl)at the rehab_ilitation is effective.

Should there be any subsidence associated with the construction p:irridors or progresive rehabilitation has not tie effective at any site, rectifica.lion works will be undertaken and rehabilitation methods will be reviewed, The criteria used to assess the success of the rehabilitation works will be site specific and in accordance with applicable environmental conditions and may encompass :

actual land use and constraints; measures of vegetative success ;

soil physicaland chemical stability;  and

rehabilitation to ensure that the rehabilitation is effective.

..,

----------------·----------------...

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Queensland

Government

lack of weed species.

Department or EmploYfne nt, E'c;onomlc Development and Innovation

Mines

VMW.deedl.q ld.gov.au ABN 24 830 236 406

Monitoring and maintenance during operational phase

Wells

Once construction of the Well is complete, the Well will be monitored on a regular basis by trained field operators both onsite and from the central control room facility. This is sustained throughout the life of the Well.

QGC will undertake on site monitoring of the Well and well pad on a monthly basis (or as required) to inspect the Well and lo assess and manage any regrowth of vegetation.  Typically f lo 2 people monitor and maintain the infrastructure using a fight 4x4 vehicle.

Monitoringof the Well may include the following activities : flushing the separator to clean out the silt and coal fines; cleaning coal fines and silt from the strainer; and

maintenance or replacemeni'of faulty or w9m valves and frttings.

12

If the Well requires maintenance or repair, a service rig may be brought

. onto site for work-over operations !o repair the Well or associated equipment. A well 'work-over' will be conducted approximately every 1 • 3 years for each Well depending on production Jev.rs. The 'work-over' will lake approximately 3 days per Well.

Monitoring of Wells will be conducted intermittently throughout a Weirs life (which is estimated to be 15 years).

Typically on a monthly basis or as required.

Service rigs may be required once every 12 months (or as required) and work-over operations may lake approximately 3 days for each Well.

Monitoring of Gathering will occur on a monthly basis (or as required).

Maintenan.ce, ret:Jairs and remf;!dlaf work of infrastructure will be undertaken as required.

The Activities  will be undertaken within the construction corridor identified on the attached map.

•,f

Rigging up and down for work-over operations requires approximately ·

10 • 15 truckloads of equipment. Approximately 20 people are required  !/

onsile. Surlace equipment will be installed as part of the service rigs activtties.

Gathering

Once the Gathering has been constructed, !he field staff, generally one person in a light vehicle, will undertake surface monitoring to ensure that no subsidence or damage has occurred, rehabilitation of the rand is progressing and that the area remains weed free. The fight vehicle will traverse the area of the construction corridor.

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Queensland

Government

Department of Employmont, Eco11omle Oevelopi:nent and Innovation

Min""

\.Nm.dl!edi.qld.gov.au ABN 24 830 236 '100

. '·

Decommissioning and Rehabilitation Works

At the end of the operational life of the .infrastructure, it is decommissioned in accordance with indu·stry practice and applicable regulations .

At the end of a Well's operating life, its surface and sub-surface infrastructure is removed and the boretiole is deco.mmissioned and plugged in accordance with regulatory guidelines.

At the end of Gathering's operating life, the surface infrastructure is removed, and the Gathering is decommissioned in accordance with regulatory guidelines.  The Gathering pipeline is disconnected from the Weil and the remaining pipeline is purged and abandoned.

Rehabilitation works of decommissioned areas will be undertaken in

13accordance with the relevant QCLNG state and federal environmental approvals and associated environmental legislation and consultation with the Landowner . Rehabilitation activities include the following:

ripping of compacted areas and spreading of stockpiled topsoil;

ripping of access roads and tracks unless otherwise requested.·by the Landowner;

removal of excess material off-site;

seeding or regeneration of natural vegetation to return the site to its pre-impact stte In'accordance with the requiremimts of    pplicable environmental conditions: and

Rehabilitation works will commence upon decommissioning of t.he

infrastructure, for a period of up to 14 days.

The operational life of a Well and associated Gathering is estimated to be 15 years.

R9utine monitoring of the site will be conducted by QGC following rehabilitation and in accordahce With applicable environmental permit requirements to ensure that the rehabilitation is effective.

The Activities will be undertaken within the construction corridors identified on the attached map.

re-spreading of cleared, stockpiledvegetiltion to aid regeneration of the site.

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Kenya East

1RP190982

Post Survey Landholder Map Landholder Slgnoff

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Post Survey Landholder Map

Attach ment  - I nformation  Ta bl e

" LotPlan lRPl.90982 ' .,
Feature Count Length Area (m'l Area (Hal
Gate 5
Grid 1
Proposed Well Head 7
Proposed Workspace/Cleari ng Area 1 1408.5 ·0.1
Proposed Well Pad 7 70408 7
Construction ·Row 22 6941.7 112690.1 !1.3
Permanent ROW 17 5083.l 30498.6 3.1
Low Point Drain Wo'rkspace l 86.3 0.0086
low Point Drain 1 59.04 0.0059
 
-            .   - ..,,Wrasttucture Points         .       ..

GOA\ 1994 MGA Zone 56

Point Eastin       Northin    Note l      259285.l     7009332 Gate 2      258789.l     7010198 Gate

3      258533.2    7011157.5 Gate

4      257239.6         7009564 Gate

5      256508.8        7009654 Gate

6      257239.6     . 7009564 Grid

7      257326.2        7009805 Well Head

8      258092.8      7010329.5 Well Head

9      256581.6    7009903.5 Well Head

10      258666.7      7010392  WelfHead

11     257423.7  . 7010548.5 Well Head .

12     256706.7      7010535 Well Head

13      257964.6        7010926 Well Head·

14      259215.5      7009384 Worksp.ace corner point

15        25926.0      7009315.5 Workspace corner point

16      259253.4       7009316.5 WorkSoace cOrner oOin(

17      259215.3    7009321.5 Workspace corner pOint

18      258726.3     7010355.5 Well Pad corner ooint

19      258629.1    7010329.5 Well Pad corner point

20     258603.9      7010426.5 Well Pad corner lioint

.21      258700.5        7010452 Well .ead corner. o_oln

il    258142.9    7010329.5 Well Pad co ner oofnt

23      258142.9      7010279.5 Welt P.ad corner ·oolrit

24      258043.1       . 7010280 Well.Pad corner oolnt .

25      258042.9     . 7010380 Welf Pad coiner'oojrit

26        258143    7010379.5 Well Pad.cprner point

27258027.2         7010893 Well Pad coiner ooint

28      251931.6     ..7010863.5 Weil Pad corner ooirit

29      257900.9      7010959.5 Well Pad corner point

30      257998.7        7010989  Weli'P.ad corner point

31

.'

 
257486.1        7010516  Well Pad'corner poini

"

 
"  3i      257390:1    7010485.5 WeU Pad corner point

,,     33      257360.9    7010581.5 Wefl'Pad·corner point ' ..

34257457       7010611  Weli Pad.t'orner oolnt

35256711        7010501 Well Pad cornef'oolnt

3625.6671.5        7010473 Well P.ad orner point

37256645,8      ·7010567 well Pad corner:point ·

38     25614i.9 ·-· 7010596.5 Well .Pad corner point

39256638.7        700S946 Well i>ad cornei jiolnt

40256625.7 "  7009846 Well Pad cornet'lioi.nf

41256526.5       . 7009858 Well Pad corner point·

42256538.8    7009958.5 well Pad corner ooint

43257382    7009848..5 Well Pad corner point

44      257369.9    7000749.5 Well Pad corne,-pol.nt ·

45257270.7      7009761.5 Well Pad corner piJJnt

46257282.6    7009860.5 well Pad corrrer poiilt

47258850.7   . 70099$9..7 LOW Point ·orain .Worksiface corner point

48258844.8     . 7009985:6 LoW. Pofnt Drcli!'I WOrkSpace comer p_oirit

49258838.1      7009995.6 low Point Drciin Workspcice comer Point

so     258844      7009999.6  Low Point Drain.Workspace corner Point

51      257246.9      7009563.5  p rooertv Boundary lnterlectlon

5.2      : 259280    7009313.5 prooertv Sounda,Y Intersection:         -

53      258585.6      7010957.S Prooertv Bourida,Y Intersection

.54        259283      700935.S  Propertv Bouiidarv lnters ectjon

55258790.3      7010192.5 propertv Boundary Intersection

56256515.8        7009653 proilertv Soundarv Intersection

57256550      . 7010537 propertv Boundary lnterseciion

.Jr

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