25th September 2012
The Hon. Andrew Cripps MP
Minister for Natural Resources and Mines
Level 17, QMEC Building
61 Mary Street
BRISBANE QLD 4000
Dear Minister Cripps,
RE: Amendments to the Petroleum and Gas (Production and Safety) Act 2004 (QLD).
Cotton Australia and Queensland Farmers Federation (we) write to you in regards to changes made to the Petroleum
and Gas (Production and Safety) Act 2004 (QLD) made by the Qld Government in recent weeks. The passing of the Mines
Legislation (Streamlining) Amendment Bill 2012 has significantly altered the definition of an ‘occupier’1 under the act, which
now stands consistent with the definition under the Mineral Resources Act 1989(QLD). Whilst we appreciate efforts to
create consistency amongst a complex and confusing framework of legislative arrangements, we are disappointed by
the restrictive definition of ‘occupier’ that currently stands.
The amended definition has major implications on the ability of our constituents to obtain compensation for mining
and petroleum activities on the land that they occupy, and potential issues in the development of Conduct and
Compensation Agreements. The former definition of occupier under the act was as follows:
1. Other than for chapters 9 and 102, a person is the “occupier” of a place only if—
(i) under an Act, the person has a right to occupy the land, other than under a mining interest; or
(ii) an occupier under subparagraph (i) has given the person the right to occupy the land.
1
2
Mines Legislation (Streamlining) Amendment Bill 2012 cl 122 (2) (b).
Please note that Chapters 9 and 10 refer to Safety, Investigations and Enforcement under the Act.
2. For chapters 9 and 10, an “occupier” of a place includes anyone who reasonably appears to be, claims to be or acts
as if he or she is, the occupier of the place.
The recently amended definition of an ‘occupier’ under the act is now limited a person3:
(a) who, under an Act, or, for freehold land, a lease registered under the Land Title Act 1994, has a right to occupy
the place, other than under a mining interest, petroleum tenure, licence, GHG authority or geothermal tenure; or
(b) to whom an occupier under paragraph (a) has given the right to occupy the place.
The recently amended definition is far more restrictive and exclusionary for many of our constituents, it effectively
requires a lease registered under the Land Title Act 1994 (QLD) to be considered as an occupier under the act.
Significant numbers of farmers in Queensland purposely hold family trusts, partnerships and companies as opposed
to a registered lease for a variety of strategic reasons- it is these farmers that will be directly affected by these changes
and who are now precluded from consideration for compensation that they are justly entitled to.
A simple registration of a lease in this occasion may not be a suitable decision for many farmers due to their business
structure, the burden of legal costs and the sheer complexity of issues required to develop such a document where an
occupier is not the owner. In addition, the capacity of farmers to constantly monitor such legislative changes, remain
responsive and run a successful business must be taken into account when proposing such changes.
The amended wording effectively means that many occupiers under the former definition in the act will not be able to
claim compensation for ‘compensatable effects’ under the act. Cotton Australia believes that the former definition of
occupier (whilst not ideal) represents a far more equitable definition and allows farmers who are affected by mining or
coal seam gas developments to rightly claim for compensation when necessary.
Cotton Australia notes that this amendment has been passed in the absence of any formal industry or community
consultation. Furthermore, it has been noted that the changes embodied in the Mines Legislation (Streamlining)
Amendment Bill 2012 were described as mere ‘administrative’ amendments to the act. We are disappointed by the lack
of consultation for such a pivotal change to resource legislation and do not agree the changes, in this example, are
3
Petroleum and Gas (Production and Safety) Act 2004 (QLD), Sch. 2.
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‘administrative’. Based on the abovementioned implications of this amendment we make the following
recommendations to restore legislative balance between farmers and resource companies in this area:

Restore the original definition of ‘occupier’ under the Petroleum and Gas (Production and Safety) Act 2004 (QLD);

Amend the definition of ‘occupier’ under the Mineral Resources Act 1989 (QLD) to match the former definition
under the Petroleum and Gas (Production and Safety) Act 2004(QLD) for the purposes of consistency, clarity and
equity for our constituents.
We look forward to your response to this letter and welcome any opportunity to discuss this matter further in person.
Alternatively we would be more than happy to hear from your Department regarding their reasoning behind the
change and any other relevant considerations.
Yours Faithfully,
Adam Kay
Dan Galligan
CEO- Cotton Australia
CEO- Queensland Farmers Federation
Suite 4.01 247 Coward St
Level 6 183 North Quay
Mascot NSW 2020
Brisbane QLD 4000
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