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ARTICLE · 27 JUNE 2013

Reviewing compensation for resources tenures - what's done isn't necessarily dusted

Corrs Chambers Westgarth
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Compensation for resource activities can be reviewed for a material change in circumstance and may increase or decrease.

AustraliaEnergy and Natural Resources
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When it comes to compensation for resources activities, a deal struck between a resources company and an owner isn't always set in stone. Compensation can be reviewed if there is a material change in circumstance and may either increase or decrease.

Resources companies must understand the types of changes that can trigger a compensation review. Only then can the full costs of a project change be properly assessed.

Resource tenure holders and land owners and occupiers1 are free to negotiate their own compensation deal. If they can't agree, they can refer the determination of compensation to the Land Court.

But the compensation story doesn't always end there. Either party can apply to the Land Court for a review of compensation where there is a material change in circumstances after the original compensation was resolved.

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