The Geothermal Energy Bill 2010 (the Bill) was introduced into the Queensland Legislative Assembly on 19 May 2010. The purpose of the Bill is to ‘encourage and facilitate the safe production of geothermal energy for the benefit of all Queenslanders’. The Bill provides for the granting of geothermal permits to explore for geothermal energy resources across large tracts of Queensland, as well as the granting of geothermal leases for large scale geothermal energy production.

Importantly, the Bill also introduces a new framework for land access and compensation arrangements applying across all tenure types in Queensland.

To replicate this framework, other relevant legislation will be amended by Chapter 10 of the Bill, including:

• Electricity Act 1994
• Geothermal Exploration Act 2004
• Greenhouse Gas Storage Act 2009
• Mineral Resources Act 1989
• Petroleum Act 1923
• Petroleum and Gas (Production and Safety) Act 2004
• Aboriginal Land Act 1991
• Environmental Protection Act 1994
• Land Title Act 1994
• Pest Management Act 2001
• Valuation of Land Act 1944
• Water Act 2000, and
• Workplace Health and Safety Act 1995.

Land Access Code

The changes to the above Acts provide for a revised land access and compensation regime to apply in Queensland. In particular, the Bill provides for a regulation to be introduced requiring compliance with a single Land Access Code of Conduct (Land Access Code) applying to all resources and tenure legislation in Queensland.

The Land Access Code is to provide best practice guidelines for communication between owners and occupiers of private land and resource tenure/authority holders and impose mandatory conditions on the conduct of authorised activities on private land.

If a condition of an existing authority is inconsistent with a mandatory provision of the Land Access Code, the mandatory provision will prevail to the extent of any inconsistency.

Preliminary and advanced activities

The Bill also amends existing resources legislation by creating two categories of activities permitted under an authority for which a tenure holder must give notice to a landholder.

The categories are:

• ‘preliminary’ activities, and
• ‘advanced’ activities.

The Bill provides for a streamlined entry process for ‘preliminary’ activities where the impacts on the private landholder’s business operations are likely to be nil or negligible and a more stringent entry process for ‘advanced’ activities where there is more likely to be a significant impact on the business of the private landholder.

A person must not enter private land to conduct an ‘advanced’ activity without first entering into a Conduct and Compensation Agreement (CCA) with the private landholder. The CCA must state how and when the authority holder may enter the land, how the authorised activities must be carried out, provide for the tenure holder’s compensation liability or future liability to the claimant, state the details of each activity to which the agreement relates and the period for which the agreement applies.

‘Advanced’ activities may include such things as constructing a track or access road, constructing a camp or clearing vegetation. ‘Preliminary’ activities relate to such low-impact activities as walking the area of the authority, taking soil samples and survey pegging.

Entry notice

The Bill introduces new entry notice requirements for entry onto land to conduct preliminary or advanced activities. Such notice must be given at least 10 business days in advance of entry being required. The notice must state the land which it is proposed to enter, the period, activities, when the activities will take place and contact details of the authority holder.

The first entry notice must include a copy of the Land Access Code, any code of practice under the relevant Act and a copy of the relevant environmental authority. The notice must also be given to the Chief Executive immediately after it is given to the landholder and prior to entry. The maximum period of entry is six months unless a longer period is agreed with the relevant landholder.

Negotiation and dispute resolution

Where negotiations between a tenure holder and landholder in relation to entering into a CCA fail, the amendments would introduce a process for dispute resolution and mediation between the parties. If at the end of the minimum 20 business days negotiation period the parties have not entered into a CCA, either party may ask an authorised officer of Queensland Mines and Energy to call a mediation. The officer must then take reasonable steps to ensure mediation is completed within 20 business days after the request. If agreement is still not reached by the parties following this process, an eligible party may apply to the Land Court for deliberation.

Transitional arrangements

Where a tenure holder and landholder are party to a compensation agreement existing on the date the Bill comes into force, such agreement becomes a CCA.

Any validly existing entry notice given prior to the date of commencement of the amendments also remains valid according to its terms even though the notice may not comply with all of the entry notice requirements introduced by these amendments.

The amendments to existing legislation will come into effect on a date to be fixed by proclamation.

Further information

If you would like further information in relation to these matters or assistance generally, please contact:

Dominic McGann on 07 3233 8838
Lyndal Hanrahan on 07 3233 8622.