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ARTICLE · 28 OCTOBER 2017

Landowners should know entitlements to compensation under a CCA

Cooper Grace Ward
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Resource companies are failing to adequately compensate for the disruption to the business activities of the landowner.

AustraliaReal Estate and Construction
Leanne O’Neill
Leanne O’Neill
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Agribusiness properties are increasingly complex businesses, which are using a range of different cropping and stock management practices over portions of property of varying quality.

Unfortunately, mining and petroleum companies often fail to recognise these complexities, resulting in inadequate conduct and compensation agreements (CCAs) being offered by resource companies.

Under section 81 of the Mineral and Energy Resources (Common Provisions) Act 2014, landowners and occupiers are entitled to be compensated for adverse impacts suffered due to petroleum or mining activities.

It's common for resource companies to offer compensation based solely on the physical disturbance, that is, compensation for land taken for the footprint of gas wells or mining activities and any associated infrastructure, with little regard to the practicalities of how agribusinesses operate in real life.

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