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ARTICLE · 06 OCTOBER 2017

Reviewing coal seam gas compensation due to a material change in circumstances

Corrs Chambers Westgarth
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The case provides useful guidance as to relevant principles that will apply in a "material change in circumstances" case.

AustraliaLitigation, Mediation & Arbitration
Michael Kimmins
Michael Kimmins
Daniel Byrne
Daniel Byrne
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The Land Court of Queensland recently delivered its decision in the matter of Nothdurft & Anor v QGC Pty Limited & Ors [2017] QLC 41.1

The case is significant because it is the first time the Court has reviewed the compensation agreed under a Conduct and Compensation Agreement (CCA) for coal seam gas activities due to an alleged "material change in circumstances". The Court has a statutory power of review in such a case under what is now s.101 of the Mineral and Energy (Common Provisions) Act 2014 (Qld).

In Nothdurft, the Court held that there had been a "material change in circumstances" since the date of the relevant CCA but only to a limited extent in comparison to what the landholders had alleged overall. The Court awarded the landholders an amount of $60,500 by way of additional compensation for the material change, which was only a small portion of the their total claim.

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