Skilton v 2PL Superannuation Pty Ltd (No 2)

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LAND COURT OF QUEENSLAND

CITATION: Skilton v 2PL Superannuation Pty Ltd (No 2) [2020] QLC 8
PARTIES: Gerald David George Skilton
(applicant)
v
2PL Superannuation Pty Ltd
(respondent)
FILE NO: MRA201-19
DIVISION: General Division
PROCEEDING: Determination of compensation payable for grant of mining lease
DELIVERED ON: 14 February 2020
DELIVERED AT: Brisbane
HEARD ON: Submissions closed 20 December 2019
HEARD AT: Heard on the papers
MEMBER: PG Stilgoe OAM
ORDERS:

1.   Gerald Skilton must pay 2PL Superannuation Pty Ltd compensation as follows:

a.    $5,732.10 for the cost of the Access Negotiations report ($5,211 plus 10%);

b.    $1,320 per annum in administration and inspection costs ($1,200 plus 10%);

c.     If Mr Skilton’s work on the mining lease impedes access to Bath Tub Dam so that the construction of an alternative watering point is required—$3,414.40 ($3,104 plus 10%), to be paid within 30 days of presentation of an invoice;

d.    If 2PL is required to muster and walk cattle down an alternative to the access track when it is blocked because Mr Skilton has not provided appropriate access—$1,760 ($1,600 plus 10%);

e.    If Mr Skilton’s mining operation requires 2PL to take the longer route to check watering points—$14.66 ($13.33 plus 10%); and

f.     Thirty-three per cent (30% plus 10% of 30%) of any invoice for reasonably necessary track grading during the term of the mining lease, to be paid within 30 days of presentation of an invoice, with a maximum of one invoice per year.

2.   The gross amounts payable in orders 1(b)-(e) are to be indexed annually according to the CPI in Brisbane.

CATCHWORDS:

ENERGY AND RESOURCES – MINERALS – MINING FOR MINERALS – COMPENSATION – where the land was used for commercial cattle operations – whether there was an entitlement to compensation for deprivation of possession of the surface of land – whether there was an entitlement to compensation for diminution of the value of the land – whether there was entitlement to compensation for diminution of the use made of the land or any improvements thereon – whether there was entitlement to compensation for loss or expense arising from the mining operations – whether there was entitlement to compensation for the cost of preparing a valuation report

Mineral Resources Act 1989 s 281

Byerwen Coal Pty Ltd v Colinta Holdings Pty Ltd (No 2) [2018] QLC 49
Deimel v Phelps [2020] QLC 2
Deimel v Phelps [2019] QLC 4
Friese v Lonergan & Anor [2019] QLC 27
Mitchell v Oakhill & Anor [1998] QLC 25
Valantine v Henry [2018] QLC 21
Wills v Minerva Coal Pty Ltd (No. 2) (1998) 19 QLCR 297

APPEARANCES: Not applicable
  1. This case highlights some perennial problems with mining compensation matters. The first problem is something I have mentioned before; compensation is not to be determined, as miners would prefer, by applying a standard rate per hectare without considering whether or not a landowner incurred actual loss or expense. The first problem highlights the second problem; a landowner must show actual loss or…

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Details
Case
[2020] QLC 8
Decision Date

CaseChat Overview and Summary

In the case of Skilton v 2PL Superannuation Pty Ltd (No 2), Gerald Skilton appealed a decision of the Queensland Land Court regarding compensation payable for the deprivation of possession of his land, which was subject to a mining lease held by 2PL Superannuation Pty Ltd. The land in question had previously been used for commercial cattle operations. The dispute centred on the compensation entitlement under the Mining Act 1978 for the use of Skilton's land for mining purposes.

The court was required to determine several legal issues, including whether Skilton was entitled to compensation for the deprivation of possession of the surface of the land, for the diminution of the value of the land, for the diminution of the use made of the land or any improvements thereon, for loss or expense arising from the mining operations, and for the cost of preparing a valuation report. The court also had to decide on the specific amounts of compensation to be paid, if any, and whether there should be an annual indexation of the compensation amounts.

The court found that Skilton was entitled to compensation for the cost of the Access Negotiations report, and for specific expenses incurred due to the mining operations, such as alternative watering points and longer routes for cattle checking. The court also ruled that the compensation amounts should be indexed annually according to the Consumer Price Index in Brisbane. The court did not find entitlement to compensation for the deprivation of possession, diminution of the value of the land, or diminution of the use made of the land.

Skilton was ordered to pay 2PL Superannuation Pty Ltd the specified amounts for the cost of the Access Negotiations report, administration and inspection costs, alternative watering points, longer routes for cattle checking, and track grading. The gross amounts for these expenses were to be indexed annually according to the Consumer Price Index in Brisbane.

Orders

Orders of the court

1. Gerald Skilton must pay 2PL Superannuation Pty Ltd compensation as follows:

a. $5,732.10 for the cost of the Access Negotiations report ($5,211 plus 10%);

b. $1,320 per annum in administration and inspection costs ($1,200 plus 10%);

c. If Mr Skilton’s work on the mining lease impedes access to Bath Tub Dam so that the construction of an alternative watering point is required—$3,414.40 ($3,104 plus 10%), to be paid within 30 days of presentation of an invoice;

d. If 2PL is required to muster and walk cattle down an alternative to the access track when it is blocked because Mr Skilton has not provided appropriate access—$1,760 ($1,600 plus 10%);

e. If Mr Skilton’s mining operation requires 2PL to take the longer route to check watering points—$14.66 ($13.33 plus 10%); and

f. Thirty-three per cent (30% plus 10% of 30%) of any invoice for reasonably necessary track grading during the term of the mining lease, to be paid within 30 days of presentation of an invoice, with a maximum of one invoice per year.

2. The gross amounts payable in orders 1(b)-(e) are to be indexed annually according to the CPI in Brisbane.

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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