Should you open the Farm Gate to a Mining or Oil & Gas Company?

Helium Marketing • Sep 29, 2021
Over the last few years there has been a noticeable increase in mineral exploration in Western Australia, particularly within the southwest region.

So, when someone out of the blue turns up at your door offering a deal for access rights, it is in your interest to seek legal advice. At Bailiwick Legal, we have assisted many land owners and farm businesses in such circumstances.

The following article provides some general advice about access and the rights of the farm land holders. The information in this article is general in nature and is not legal advice. We recommend that you speak to your legal advisor before taking any action. 

Mining
First we are going to have a look at the mining industry, and what your options are when a representative of a mining company seeks access to explore for mineral resources on your land.

“Right of Veto”
Under the Mining Act 1981, the owner or occupier of land under cultivation (usually referred to as “arable land”) has what is commonly called a “right of veto”: that is, the right to politely say “No, you cannot explore on my land”.

This right is especially useful today as farmers are becoming increasingly wary about who is accessing their land and importantly, what biosecurity measures are proposed to be taken if access is granted.

If you decide to exercise your right of veto, you can feel secure in the knowledge that there is nothing more that a mining company can do, as there is no mechanism under the Mining Act to force you to allow access.

However, this right of veto only protects you if you haven’t previously given permission to a mining company to access and explore on your land. If you have already consented to access in the past, your rights are likely to be significantly limited.

Granting Access
Now, if you have no objection to a mining company having access to your land we advise that you negotiate an “access and compensation agreement”. If you take this course, you also need to be very careful.

You need to take a good look at the terms of any access and compensation agreement proposed and make sure granting access will not leave you disadvantaged or displace your right to farm the land. It is important to know what the mining company is looking for, what works it is proposing to undertake, the timing of those works and what compensation is being offered in return for access to the land. Also, question what biosecurity measures the mining company plans to adopt, and again importantly, how these activities are likley to impact on your production program.

The Mining Register 
Under the Mining Act the Department of Mines is required to maintain a register of “mining tenements”. This register is a critical reference for ascertaining who owns a mining tenement and what land the mining tenement falls over.

If you have already granted a mining company access to your land it is likely that your land has been formally “added” to the register for the relevant mining tenement. If this is the case, then it will likely be easier for a mining company to obtain a mining lease (where there is a commercial ore body), and your right may be limited to negotiating further compensation.

The Price of Not Setting a Price
It is of some concern the amount of times I have been informed by landowners or occupiers of land, that they have simply allowed a company to explore on their land where no access and compensation agreement, or any agreement, has been reached. In such circumstances, land owners and occupiers may well be limiting or negating any rights they have under the Mining Act.

Oil and Gas
When considering exploration for hydrocarbons, the laws around access to farm land are significantly different.

Under the Petroleum and Geothermal Energy Resources Act 1967, there is no such thing as a “right of veto”, and if an agreement to access and compensation is not reached, one of the parties can commence proceedings in the nearest Magistrates Court to seek a determination of compensation.

In our experience, on most occasions the parties reach an agreement in relation to access, timing, compensation and biosecurity measures, to name a few of the key components to an access agreement. However, occassionally companies seeking to explore for hydrocarbons on farm land (by drilling an exploration well) have commenced an action in the Magistrates Court because an agreement to compensation has not been reached. All of these have settled in one way or another and none, as yet, have gone to a trial.

In 2015, APPEA (Australian Petroleum Production and Exploration Association), WAFarmers, the PGA and vegesWA negotiated a template Access and Compensation Agreement for use within the rural sector. This template is available from the organisations named and is a useful tool for farmers.

Not all companies use this template, and because the land owner and occupier do not have a “right of veto”, we recommend the obtaining of advice and assistance from your lawyer as soon as possible if approached.

Conclusion
The intricacies of the legal relationship between farmers and mining or oil and gas companies is substantial.

Given our experience with these agreements and dealing with such companies, the team at Bailiwick Legal are well placed available to provide you with guidance, and ensure that you are not only aware of your rights, but also to assist you in engaging your rights to best suit your interests.

So, if you are asked for access to your land by a mining company, or by company that wants to drill an exploration well (or even a production well), and you're wondering if you should agree to that access, pause and take a step back and then give us a call. We are here to help you with that decision.

05 Mar, 2024
Find out what we have been up to and recent events in our March 2024 newsletter .
20 Feb, 2024
The Human Rights Commission may take action against employers who fail to actively eliminate sexual harassment, discrimination and victimisation in the workplace, as part of a positive duty reform. While the reform itself was introduced under the Sex Discrimination Act in 2022, a change was put in place last December - and every employer, including those in the agricultural sector, is affected. This change has provided the commission with new powers to investigate and enforce compliance with positive duty and investigate organisations or businesses where it "reasonably suspects" non-compliance. What does this mean for shearing contractors, sheep producers and other primary producers? Speaking at the WA Shearing Industry Association (WASIA) general meeting last month, Bailiwick Legal solicitor Matilda Lloyd said the enforcement power involved inquiries and investigations similar to WorkSafe. She said a complaint did not have to be made for an inspector from the commission to visit and look over a workplace, and see if there is any kind of sexual harassment occurring. "The commission looks at policies and procedures, and essentially you need to be able to demonstrate that you're compliant with this positive duty. "When you think about it in the context of a shearing shed, it is the safety checklist you have in place for when people enter the shed. "Those are the things you need to consider with sexual harassment as well." Ms Lloyd said the commissioner never had the power to conduct an investigation before and, as such, practically how it was going to work was an unknown. "We don't know whether they're going to be coming out and doing regular inspections, what those inspections are going to look like in terms of time or how thorough they are going to be, " sh e said. "They need to be thought of the same way as a WorkSafe investigation, whereby it could happen at any point whether a complaint is made or not. "Investigators will expect employers to show that they are actively trying to eliminate this form of unlawful conduct." If an inquiry occurs, what will happen? If an employer wasn't taking the correct measures to stop sexual harassment, discrimination and victimisation from occurring, they could be issued a compliance notice. Ms Lloyd said if the notice wasn't adhered to and an inspector returned, they could apply to the Federal Court to have that positive duty enforced. What is positive duty? Ms Lloyd said a positive duty was a legal obligation on an employer or person conducting a business or undertaking to take reasonable and proportionate measures to eliminate unlawful behaviours in the context of work, workplaces and working relationships. In the case of shearing contractors, sheep producers and other primary producers, she said that obligation was on the employer and applied to all staff, workers, contractors, customers and people entering, for example, a shearing shed. She said the obligation was "very broad" and applied right across the board. "Enforcing positive duty is pretty straightforward in terms of the employer, but when we look at the other parties involved it is extensive, " Ms Lloyd said. "When we are talking about sexual harassment in the workplace we are talking in the shed and in a vehicle on the way to work or another shed. "It is also offsite, so if you are having work drinks at the quarters or wherever afterwards - that's also a workplace within the definitions of the act. "The obligation applies across the board in all of these circumstances. "And also applies to visitors, so if you have farmers and they bring their wives, it is anyone coming into that shed or environment." In the context of positive duty, what do contractors need to do? Firstly, employers need to understand what sexual harassment, sex-based harassment, discrimination and victimisation is. Ms Lloyd said employers were responsible for leading their team, so it was important to understand what the laws were and how they affected not only them, but their employees. "When we talk about sexual harassment we talk about unwelcome conduct that is of a sexual nature or requests for sexual favours, touching, requesting dates and so forth," she said. "Whereas sex-based harassment is harassment that is targeted at a particular sex. "This could be making sexist comments about a woman because she's a woman or making sexist comments about a man because he's a man. "Then victimisation is about targeting someone because they've made a complaint." Ms Lloyd said a conversation then needed to be had to educate employees, whether that be face-to-face, by Whatsapp or having it displayed in the shed. She said there were resources and guidelines available through the Human Rights Commission, which helped with this. "Have that conversation - as an employer understand what sexual harassment is but then talk to your employees and be serious about educating your employees, " Ms Lloyd said. "It is about actually having that conversation and then thinking about what material can be given to them. "The whole point is to make it easy, so people understand. "Then it goes into training and support - is there someone in your team people can talk to?" The seven standards The commission has released guidelines for complying with the positive duty under the Sex Discrimination Act 1984. The guidelines are centred around seven standards - leadership, culture, knowledge, risk management, support, reporting and response, and monitoring, evaluation and transparency. Examples of practical actions that organisations or businesses can take to meet each of the standards are set out in the guidelines. Ms Lloyd said, as each business is different, it depended on how big a team was, what was going to be practical and cost-effective in the workplace. She said the commission would look at the different standards if there was an investigation or inquiry. How often do employers need to talk to their team about this? Ms Lloyd said it should be looked at similarly to safety or work related issues, whether that be a toolbox or regular meeting once a week or every couple of days. She said if a contractor was starting a new job or visiting a place they hadn't been to before, it was about having that conversation upon arrival. "When everyone's preparing for their first break, sit down and have a chat about general safety as well, " Ms Lloyd said. "That's the first step, and then follow it up a month later when you start a new shed. "It is about consistently and actively taking measures to create a safe space. "It seems obvious that once you've gone through your checklist you then talk to the people coming into that environment, who are your workers, and alert them to what you have found. "Similarly, with positive duty, a checklist is proof that you are doing the right thing if you are audited." Does insurance cover sexual discrimination cases? Having insurance does not diminish positive duty, it just safeguards employers against potential damage and loss against their business if they are sued. Ms Lloyd said sexual discrimination cases, which travelled through the Federal Court, were not cheap and often have adverse outcomes from an award of damages perspective. "If we talk about Work Health and Safety, as you know, that is a serious issue you have to take onboard and consider, " she said, "And that's the way I think employers need to frame their conduct when talking about and implementing measures to prevent sexual harassment, discrimination and victimisation." Is an employer covered if they have put everything in place, but those rules are still broken? Ms Lloyd said an employer would be protected if they have been able to eliminate as much as they can with the resources available to them. She said it was important to remember sexual harassment and discrimination is unlawful conduct. "In terms of positive duty, by taking all reasonable steps and measures given the resources available to you, you will be able to mount a solid defence against any claim. "If you've done your duty positively and it can be demonstrated that you've exercised your role in appropriate fashion, then that will be solid defence." For more information on the positive duty reform and seven standards, go to humanrights.gov.au
14 Dec, 2023
See what's been happening and current topics of interest in our December 2023 newsletter .
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