Tully v Rayment Pastoral Holding Pty Ltd

Bruce Cameron Tully applied for the renewal of Mining Lease 6039, which was set to expire on 31 December 2008, and sought a determination of compensation payable to Rayment Pastoral Holding Pty Ltd, the landholder, in connection with the renewal of the mining lease and access to it. The matter was referred to the Land Court of Queensland for a determination of compensation, and the Judicial Registrar, Mr. BR O'Connor, was tasked with deciding the compensation payable by the miner to the landholder.

The court was required to determine the compensation payable by the miner to the landholder under the Mineral Resources Act 1989, taking into account all heads of compensation listed in s.281(3) of the Act. The court was also required to consider the compensation for access to the mining lease, which was not specified in the submissions made by the landholder. The absence of detailed or any compensation evidence presented a challenge in determining the appropriate compensation.

The Judicial Registrar adopted the analysis of the legislative provisions, compensation principles, and methodology applied by Mining Referee Windridge in Re Wallace & Ors & Evans. Given the minimal information provided by the landholder, the court assessed the compensation for access to be $5 per hectare per annum for the term of the lease (21 years), which amounted to $4,410, and awarded an additional $50 for access compensation. Additionally, pursuant to s.281(4)(e) of the Act, the court awarded the additional sum of $450.

The court ordered that the miner pay the total compensation of $4,910 to the landholder within two months from notification of the renewal of the mining lease by the Mining Registrar. The court emphasized the importance of parties complying with Court Practice Direction and submitting relevant material in compensation matters to facilitate a fair and informed determination of compensation.